Kansas City Life $45 Million COI Settlement, Who Qualifies, How Much Policyholders Get and What to Do If Your Check Never Arrived
Kansas City Life Insurance Company settled cost-of-insurance (COI) class action claims for $45 million. Both court approvals came in December 2025, and automatic payments to eligible policyholders were expected to be mailed by February 20, 2026. No claim form was required, and there is no open claim window in November 2026. The company also reported a return to profitability in the first nine months of 2026 after booking the settlement charge in 2025.
If you owned a covered universal life or variable universal life policy, the practical question now is whether your check was mailed, whether it was cashed or expired, and where to go if it never arrived. Settlement checks expire 180 days after issuance, and for checks mailed on February 20, 2026 that date was around August 19, 2026. Unclaimed funds may already be with a state unclaimed-property office. Contact the administrator promptly (details below).
Kansas City Life denied the allegations and did not admit liability. The settlements are not a finding of wrongdoing.
Quick Facts: Kansas City Life $45 Million COI Settlement
| Detail | Verified information |
| Defendant | Kansas City Life Insurance Company |
| Combined settlement | $45,000,000 |
| Main federal settlement | $40,000,000 (approximately 88,000 policies) |
| Separate Missouri “Sheldon” settlement | $5,000,000 (Missouri-issued Century II VUL policies, about 530 policies) |
| Main case | Van Zanten and Vittetoe v. Kansas City Life Insurance Company, No. 4:25-cv-00095-BP, U.S. District Court, W.D. Missouri |
| Sheldon case | Sheldon v. Kansas City Life Insurance Company, No. 1916-CV26689, 16th Circuit Court, Jackson County, Missouri |
| Eligible policies | Specified universal life and variable universal life policies active on or after January 1, 2002 |
| Claim form required | No. Payments were automatic |
| Final approval | Sheldon: Dec. 11, 2025. Main: Dec. 12, 2025 |
| Expected check mailing date | February 20, 2026 (not a claim deadline) |
| Claim deadline | None |
| Official website (main $40M settlement) | https://kclcoisettlement.com |
| Official website (Sheldon $5M settlement) | https://sheldonkcllitigation.com |
| Main administrator phone | 1-855-493-7460 |
| Sheldon administrator phone | 1-844-672-0836 |
Important: February 20, 2026 was the administrators’ expected mailing date, not a filing deadline. The settlement websites do not confirm that every individual check was delivered or cashed.
What Is the Kansas City Life Cost-of-Insurance Lawsuit About?
Universal life insurance combines death-benefit protection with a cash-value account. Each month the insurer deducts charges from that account, including the cost of insurance (COI). Policyholders alleged Kansas City Life calculated COI using factors their contracts did not allow. The complaints raised three central allegations:
- Unauthorized factors. The company allegedly used non-mortality factors, including expenses, when the policy language limited COI to expectations of future mortality experience.
- Failure to reduce charges. The company allegedly did not lower COI rates when its mortality expectations improved.
- Double-charging expenses. Expenses were allegedly built into COI rates even though the policies separately authorized a fixed monthly expense charge.
This matters because money deducted from a policy’s accumulated value could otherwise have earned interest, helped pay future premiums, supported the death benefit, or been available for withdrawals and loans. Kansas City Life denied the allegations and maintained that it followed its contracts.
The Legal Basis: Breach of Contract
COI cases are generally breach-of-contract cases. The policy is the contract, and the question is whether the insurer’s charges followed the contract’s rate-setting language. State contract law governs, and courts read the policy language, including any limits on which factors may be used, as written. Some COI cases add related claims such as breach of the implied covenant of good faith and fair dealing. Plaintiffs usually must show that the charges exceeded what the policy allowed and that the policyholder was damaged as a result. Because insurers are regulated by state insurance departments, policyholders can also contact their state department of insurance with concerns, though regulators do not decide private class actions.
Why Kansas City Life Agreed to Pay $45 Million
Several related COI cases were pending in different courts. In June 2025 the company announced a global settlement creating two funds:
| Settlement | Amount | Main eligible group |
| Van Zanten and Vittetoe (federal) | $40,000,000 | About 88,000 specified policies, excluding Missouri-issued Century II |
| Sheldon (Missouri state court) | $5,000,000 | Missouri-issued Century II variable universal life policies |
| Combined | $45,000,000 |
The agreement also resolved related claims, including Fine and McMillan. The earlier Karr and Meek judgments were separate and not part of the $45 million.
How Class Settlements Are Approved
A class settlement is not final until the court says so. Under Federal Rule of Civil Procedure 23(e), a federal judge must find a class settlement fair, reasonable and adequate after notice to class members. The Sheldon case was in Missouri state court, which applies its own class action rules. Class members could object or opt out before the deadlines. Defendants in federal class settlements must also give notice to federal and state officials under the Class Action Fairness Act (28 U.S.C. § 1715). Final judgments in both cases dismissed the covered claims with prejudice, meaning class members who did not opt out generally cannot sue again over the released claims, whether or not they cashed a check.
Who Qualifies for the $40 Million Federal Settlement?
The class covers current and former owners (and estates of deceased owners) of the following Kansas City Life policies that were active on or after January 1, 2002:
| Covered policy plans |
| Better Life Plan |
| Better Life Plan Qualified |
| LifeTrack |
| AGP |
| MGP |
| PGP |
| Chapter One |
| Classic |
| Century II (except Missouri-issued policies) |
| 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 |
| Ultra 20 (96) |
A policy does not need to be in force today. The settlement excludes certain individuals and entities connected to Kansas City Life, the litigation and the courts, and people who validly opted out. Six policy owners opted out of the main settlement.
Missouri Century II Policies: The Separate Sheldon Settlement
Missouri-issued Century II variable universal life policies active on or after January 1, 2002 are covered by the $5 million Sheldon settlement, not the main one. Someone who owned both a Missouri Century II policy and another covered policy may be in both groups. Do not assume a notice for one settlement accounts for every policy you owned.
How Much Is the Kansas City Life Settlement Payout?
There is no single payment amount. Each fund has its own court-approved distribution plan.
$40 million federal settlement. Payments are approximately proportional to the COI charges each class member actually paid, with equitable adjustments for policies that remained active and for people who already received compensation through related judgments. The fund also pays approved fees, expenses, service awards and administration costs.
$5 million Sheldon settlement. The order provides for a minimum payment of $10 per class member plus an approximate pro-rata share based on jury-awarded damages and prejudgment interest, an estimate of alleged later losses, and an upward adjustment for policies still active. The $10 is a minimum component, not a guaranteed total.
Why amounts differ. Payments depend on how much COI was deducted, how long the policy stayed active, whether it was still in force, whether earlier judgments already paid you, and approved fees and costs. Two owners of the same policy type can receive different amounts. No court document states a universal average payout.
Attorney Fees and Other Deductions
The $45 million is not what policyholders collectively received in checks.
| $40 million federal settlement | Amount |
| Class counsel attorneys’ fees | $13,333,333.33 |
| Litigation expenses | $641,712.45 |
| Service award, Robert R. Fine | $25,000 |
| Service award, Larry A. McMillan | $25,000 |
| Service award, Peter M. van Zanten | $10,000 |
| Service award, Dwain E. Vittetoe | $10,000 |
| Settlement administration | Additional approved expenses |
| $5 million Sheldon settlement | Amount |
| Class counsel attorneys’ fees | $1,666,666.67 |
| Litigation expenses | $212,390.51 |
| Service award, J. Gregory Sheldon | $100,000 |
| Settlement administration | Additional expenses |
Under Rule 23(h), courts review attorney fee awards in class actions. Fees here were about one-third of each fund.
Do You Need a Claim Form?
No. The administrators used Kansas City Life’s policy records to identify eligible owners and calculate payments, and mailed checks to the address on file. There is no new November 2026 claim window. Do not pay any third-party website or service to “file a claim.”
What If Your Check Never Arrived?
Checks were expected to be mailed by February 20, 2026, with 10 to 15 business days for delivery. That date has passed. Do not assume you were excluded. Contact the right administrator.
Main $40 million settlement: KCL COI Settlement Administrator
- Phone: 1-855-493-7460
- Email: [email protected]
- Mail: KCL COI Settlement, P.O. Box 2010, Chanhassen, MN 55317-2010
Sheldon $5 million settlement: Sheldon v. KCL Litigation Administrator
- Phone: 1-844-672-0836
- Email: [email protected]
- Mail: Sheldon v KCL Litigation, P.O. Box 2002, Chanhassen, MN 55317-2002
Have ready your policy number, name, former mailing address and any settlement notice. If the policy owner has died, ask the administrator what documentation an estate needs.
Check Reissue and the 180-Day Expiration
The main administrator’s FAQ describes a procedure for requesting a replacement check. Send the request to the email or mailing address above and allow about four to six weeks for processing. Sheldon replacement requests go to the Sheldon contacts.
Settlement checks expire 180 days after issuance. Under both processes, uncashed funds are transferred to the applicable state’s unclaimed-property division. Once that happens, you generally must recover the money from the state. Every state runs a free unclaimed-property program, and the National Association of Unclaimed Property Administrators operates MissingMoney.com, a free search tool. Never pay a “finder” a fee for money you can claim free yourself.
Ask the administrator: Was a check issued? Was it returned as undeliverable? Did it expire? Have the funds been sent to a state, and which one?
How to Check Your Eligibility
- Find your policy documents: the contract, annual statements or premium notices.
- Identify the plan name and compare it with the covered list.
- Confirm the policy was active on or after January 1, 2002. A policy that ended before that date generally does not qualify.
- Check whether a Century II policy was issued in Missouri. If so, it belongs to the Sheldon settlement.
- Contact the correct administrator with your policy number and ask whether a payment was issued.
- Ask for a trace or reissue if needed.
Opt-Out and Objection Deadlines Have Passed
| Settlement | Event | Date |
| Sheldon $5M | Objection deadline | Sept. 22, 2025 |
| Main $40M | Opt-out and objection deadline | Oct. 27, 2025 |
| Sheldon $5M | Final approval | Dec. 11, 2025 |
| Main $40M | Final approval | Dec. 12, 2025 |
Six policy owners excluded themselves from the main settlement, and the courts reported no objections. People who validly opted out do not receive settlement benefits through that settlement and may keep individual rights, subject to applicable law. For everyone who remained in the classes, the final orders released the covered claims.
Are Settlement Payments Taxable?
Tax treatment depends on what the payment replaces and on your policy history. A payment that compensates for charges deducted from a life insurance policy’s cash value may be treated differently from interest or other income, and your policy basis can matter. The administrator may not provide tax advice. Consult a qualified tax professional about how to report your payment.
Why Kansas City Life Returned to Profit in 2026
The company’s October 30, 2026 announcement reported net income of $19.077 million for the first nine months of 2026, compared with a net loss of $21.733 million for the same period in 2025. The difference is mainly the settlement charge: in the second quarter of 2025 Kansas City Life established a $45 million settlement liability, with an after-tax impact of $35.5 million. Without that accrual, the company said its first-nine-months 2025 net income would have been about $13.8 million. Against that adjusted figure, 2026 net income was about $5.3 million, or roughly 38%, higher.
This is not evidence of a surge in the third quarter. Third-quarter 2026 results were lower than a year earlier:
| Measure | Q3 2026 | Q3 2025 |
| Revenue | $121.859 million | $123.524 million |
| Net income | $1.738 million | $2.833 million |
| Earnings per share | $0.18 | $0.29 |
For nine months, revenue was $365.551 million in 2026 versus $363.924 million in 2025. The company attributed the improvement mainly to lower operating expenses, with investment revenue also contributing. The earnings headline reflects a 2025 expense that did not repeat, not new payments to policyholders in 2026.
Earlier Kansas City Life COI Judgments: Karr and Meek
The $45 million was not the only money Kansas City Life paid in the broader COI litigation. The settlement agreement identifies two earlier judgments the company reported as fully satisfied:
| Earlier case | Amount paid |
| Karr v. Kansas City Life Insurance Company | $48,523,128.38 |
| Meek v. Kansas City Life Insurance Company | $1,061,182.87 |
| Combined | $49,584,311.25 |
These were separate from, and in addition to, the $45 million. Some policyholders who received money through Karr or Meek could also qualify for the later settlement for additional COI charges outside the periods those judgments covered. The distribution plan adjusted for amounts already received.
Beware of Scams
- No claim fee exists. Never pay to get a settlement check or to “release” funds.
- Verify any call, text or email by going directly to the official settlement websites or the phone numbers above.
- Do not give bank account logins. Real administrators do not ask for them.
- Report suspected fraud to the FTC at ReportFraud.ftc.gov.
Other Universal Life COI and Policy-Charge Cases
The Kansas City Life litigation is part of a broader group of disputes over how insurers calculate monthly policy charges. Similar matters include a putative class action against Farmers New World Life over universal life charges and credited interest, the Brighthouse Life Insurance $9.25 million settlement, and the Transamerica $110 million cash-value settlement. They are separate cases, and eligibility in one does not establish eligibility in another.
Key Dates
| Date | Event |
| Mar. 29, 2022 | Fine v. Kansas City Life filed (California federal court) |
| May 5, 2022 | McMillan v. Kansas City Life filed (Maryland federal court) |
| Feb. 12, 2025 | Van Zanten and Vittetoe filed (Missouri federal court) |
| June 24, 2025 | Company announces proposed $45 million global settlement |
| July 14, 2025 | Preliminary approval of main federal settlement |
| Sept. 22, 2025 | Sheldon objection deadline |
| Oct. 27, 2025 | Main opt-out and objection deadline |
| Dec. 11, 2025 | Final approval of Sheldon settlement |
| Dec. 12, 2025 | Final approval of main $40 million settlement |
| Feb. 20, 2026 | Expected mailing date for settlement checks |
| About Aug. 19, 2026 | Approximate expiration of checks mailed Feb. 20 (180 days) |
| Oct. 30, 2026 | Kansas City Life announces Q3 2026 results |
Frequently Asked Questions
Is there still time to file a claim?
No claim was required, and there is no claim deadline. Contact the administrator if you believe you were eligible and were not paid.
I never got a check. Am I excluded?
Not necessarily. The address on file may have been outdated. Contact the administrator.
My check expired. Is the money gone?
Not necessarily. Uncashed funds may have been sent to a state unclaimed-property office, where you can recover them for free.
Can an estate receive a payment?
Yes, the class includes estates of deceased policy owners. Ask the administrator about required documents.
Can I still opt out or object?
No. Those deadlines passed in 2025.
Do I need an attorney?
Not to receive an automatic payment. For complicated situations, such as multiple policies, an estate or tax questions, consult a licensed attorney or tax professional.
Disclaimer
AllAboutLawyer.com is a consumer legal information resource and is not a law firm. This article provides general legal information, not legal, tax or financial advice, and does not create an attorney-client relationship. Kansas City Life denied the allegations, and the settlements resolve the covered claims without establishing that the insurer violated its policies. Individual payments depend on the court-approved distribution plans and each policyholder’s circumstances. Contact the appropriate settlement administrator about missing, expired or unclaimed payments, and consult a licensed professional about your situation.
About the Author
Israr Ahmad is a Legal Content Researcher at AllAboutLawyer.com. This report was prepared using Kansas City Life’s financial disclosures, court-approved settlement documents, final judgments and official administrator information. Last updated November 2, 2026.
Sources
Verification note: The $40 million settlement, class definition and final approval are confirmed by the federal court’s December 12, 2025 order. The $5 million Sheldon settlement and its automatic-payment terms are confirmed by the Jackson County court’s December 11, 2025 order. The earnings figures come from the company’s October 30, 2026 release. Dollar amounts, dates and contact details are as reported in those documents, and you should confirm contact details on the official sites before relying on them.
Official settlement resources
- KCL COI Settlement (main $40M): https://kclcoisettlement.com
- Main settlement FAQ: https://kclcoisettlement.com/frequently-asked-questions/
- Main settlement court documents: https://kclcoisettlement.com/important-case-documents/
- Sheldon v. Kansas City Life ($5M): https://sheldonkcllitigation.com
- Sheldon FAQ: https://sheldonkcllitigation.com/frequently-asked-questions/
- Sheldon court documents: https://sheldonkcllitigation.com/important-case-documents/
Company disclosure
- Kansas City Life Announces Third Quarter 2026 Results (Oct. 30, 2026): https://www.prnewswire.com/news-releases/kansas-city-life-announces-third-quarter-2026-results-302925152.html
Primary court records
- Van Zanten and Vittetoe v. Kansas City Life, Final Approval Order (Dec. 12, 2025): https://kclcoisettlement.com/wp-content/uploads/2025/12/5KM4687-2025-12-12-48-Order-Granting-46-Motion-for-Final-Approval-of-Class-Action-Settlement-and-44-Motion-for-Attorney-F.pdf
- Van Zanten and Vittetoe v. Kansas City Life, Final Judgment (Dec. 12, 2025): https://kclcoisettlement.com/wp-content/uploads/2025/12/5KM4688-2025-12-12-49-Final-Judgment.pdf
- Sheldon v. Kansas City Life, Order and Judgment Granting Final Approval (Dec. 11, 2025): https://sheldonkcllitigation.com/wp-content/uploads/2025/12/5KM4606-2025-12-11-Judgment-Entered-Order-and-Judgment-Granting-Final-Approval-of-Settlement.pdf
Rules and resources referenced
- Federal Rule of Civil Procedure 23 (including 23(e) and 23(h))
- Class Action Fairness Act, 28 U.S.C. § 1715
- National Association of Unclaimed Property Administrators (MissingMoney.com): https://www.missingmoney.com
- FTC fraud reporting: https://reportfraud.ftc.gov
Related AllAboutLawyer guides
- Farmers New World Life Putative Class Action Over Universal Life Charges and Interest:
- Brighthouse Life Insurance $9.25 Million Settlement
- Transamerica $110 Million Life Insurance Settlement
About the Author
Israr Ahmad is a legal content researcher with 4+ years of experience covering class action settlements and consumer rights cases. He has researched and published coverage of 2,500+ settlements using verified court records, settlement administrator filings, and government sources. Learn more about Israr.