$45M Kansas City Life Settlement Resolves Lawsuit Over Alleged Cost-of-Insurance Overcharges

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A $45 million settlement has been reached to resolve a consolidated class action lawsuit that claimed Kansas City Life Insurance Company overcharged customers by making unlawful, unauthorized cost-of-insurance deductions from the value of their flexible premium adjustable life insurance policies.

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The court-approved website for the Kansas City Life class action settlement can be found at KCLCOISettlement.com.

The deal covers current and former owners of one of the approximately 88,000 policies issued by the insurer, including Better Life Plan, Better Life Plan Qualified, LifeTrack, AGP, MGP, PGP, Chapter One, Classic, Century II, Rightrack (89), Performer (88), Performer (91), Prime Performer, Competitor (88), Competitor (91), Executive (88), Executive (91), Protector 50, LewerMax, Ultra 20 (93), Competitor II, Executive II, Performer II and Ultra 20 (96) policies that were active on or after January 1, 2002.

Head to this page for a list of qualifying policy numbers for the Kansas City Life Insurance Company class action settlement.

The official Kansas City Life settlement website notes that Century II life insurance policies issued in Missouri are excluded from the deal. According to court documents, owners of these policies are covered under a separate settlement out of Missouri that aims to resolve another class action lawsuit—known as Sheldon v. Kansas City Life Insurance Company—and should receive a separate notice related to that settlement.

The website says that any customer who owned a Century II policy issued in Missouri, as well as one of the above-mentioned policies, may be a member of both settlement classes.

Under the terms of the settlement agreement, $40 million of the settlement fund will be used to provide pro-rated cash payments to eligible class members, after deductions are made for attorneys’ fees, service awards and administrative expenses.

Class members do not have to do anything to receive a Kansas City Life settlement payout, the website states.

Related Reading: Kansas City Life Insurance Takes Unauthorized Deductions from Policy Values, Class Action Alleges

Per the site, individual payout amounts will be proportional to how much a customer paid for cost-of-insurance charges.

“There will also be a minimum cash payment and more paid where a Settlement Class Member’s Policy is still in force,” the website adds.

According to the agreement, the remaining $5 million of the settlement fund will be used to resolve the claims of those covered by the pending Sheldon deal.

The Kansas City Life class action settlement, which resolves the lawsuit against the insurer, received preliminary approval from the court on July 14, 2025. A hearing is set for December 12, 2025, at which time the court will determine whether to grant final approval to the terms of the deal.

The website says that, should the settlement be ultimately approved by the court in charge of the case, as well as the court in charge of the Sheldon deal, settlement checks will be issued to eligible class members within 30 days following the date it becomes final. Payments for those covered by the Sheldon settlement will also be distributed at that time, the agreement adds.

Kansas City Life previously faced two other lawsuits over allegations that its cost of insurance deductions violated the terms of its life insurance policies, court documents relay. These cases were resolved by respective payments of $48,523,128.38 and $1,061,182.87, the settlement agreement states.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.