Personal Risk Profile and Asset Allocation Variable Product Series Building your future with a secure partner SM A Guide to Investing Kansas City Life Insurance Company
Personal Risk Profile and Asset Allocation
Variable Product SeriesBuilding your future with a secure partner SM
A Guide to Investing
Kansas City Life Insurance Company
Investment basicsTakingpersonalresponsibilityforprovidingyourownfinancialsecuritycanbeadauntingtask.Itmeansplanningforanincomeyouwon’toutliveandprovidingcashfortheextrathingsyouwanttodoorbuyafteryouretire.
Theearlieryoustart,theeasieritwillbe.
• Team up with a professional.Findoneyoutrustandbehonest withhimorheraboutyourfinancialgoals.Berealisticabout yourexpectations. • Diversify.Spreadyourmoneyoveravarietyofinvestments.Some investmentsperformbetterthanothersatcertaintimes,andwitha diversifiedportfolioyouhaveabetterchanceofweatheringtheups anddownsofthemarket.However,diversificationcannotguarantee gainsorprotectagainstloss. • Get in and stay in.Theearlieryoustart,thelessyouwillhavetoput awaytomeetyourgoalsforretirement.
Andhistoryshowsusthatlong-terminvestorshavebeenrewardedforholdingontotheirinvestmentsthroughperiodsofmarketdeclineandvolatility.Ofcourse,pastperformancecannotguaranteefutureresults.
What is asset allocation?Assetallocationistheprocessofchoosinginvestmentoptionsthatmatchyourpersonalriskprofileandinvestmentgoals.
Generallyspeaking,ifyouareyounger,havealotofassetsordon’tanticipatedippingintoyournesteggfor10yearsormore,youcanaffordtotakemoreriskwithyourinvestments.Butifyouplantousethemoneysoonerratherthanlater,youneedtoprotectyourassetsbyallocatingmoreofyoursavingstosaferinvestments.
Thequestionnaireinthisbrochurewillhelpyoudetermineyourpersonalinvestmentprofile.Theallocationmodelswillhelpyouchooseappropriateinvestmentsforyourprofile.
Portfolio rebalancingRebalancinginvolvesstayingontrackwithyourinvestmentsafteryou’vedevelopedyourinitialassetallocation.
Marketfluctuationsmaychangetheinitialmixofyourinvestments.Rebalancingyourportfolio,oradjustingthetypesoffundsinwhichyourmoneyisinvested,canensurethatyourassetallocationstaysasyouintendedinsteadofhavingtoomuchofyourmoneytiedupinthesametypeofinvestment.
It’saneasywaytokeepyourinvestmentgoalsontrack.Bestofall,youmayselectitasanautomaticfeatureonKansasCityLifeInsuranceCompany’svariableproducts.
This brochure is authorized for distribution only when preceded or accompanied by product and fund prospectuses. The prospectuses contain more complete information about the product, including charges, limitations, expenses and investment options. As an investor, you should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. Read the prospectuses carefully before investing money.
Additional prospectuses can be obtained from your registered representative or by calling our toll-free number, 800-616-3670.
Kansas City Life’s Century II Variable Product Series is distributed by Sunset Financial Services Inc., Member FINRA/SIPC, a wholly owned subsidiary of Kansas City Life Insurance Company.
Pe r s o n a l R i s k P ro f i l e
For
RiskToleranceScore
ChecktheboxindicatingtheinvestortypeandportfoliomodelthatmatchesyourPersonalRiskProfilescore
Basedonyourassetallocationmodel,yourinvestmentchoicesare:
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Conservative – Portfolio 1 Moderate-Conservative – Portfolio 2 Moderate – Portfolio 3 Moderate-Aggressive – Portfolio 4 Aggressive –Portfolio 5
Asset allocation offered to Kansas City Life’s clients
Thewayyoudivideyourassetsamongdifferenttypesofinvestmentswill
havealargeimpactonyourportfoliointhelongterm.KansasCityLife
understandsthesechallengesandhasdevelopedthequestionnaireincluded
inthisbrochuretohelpyoudetermineyourpersonalriskprofile.
Yourscoreonthequestionnairewillsuggestanassetallocationmodel
portfoliotoconsiderwhenmakingyourallocationchoices.Remember,
though,thefinalchoiceisyours.
Percentage Fund Name Invested
1
ASSET ALLOCATION PORTFOLIO MODELS
Creatingyourownportfoliocanbeacomplicated
andconfusingprocess.Thefollowinginvestment
modelshavebeenproducedtohelpsimplifythe
decision.Ifyouknowyourrisktolerance,simply
selectamodelanddecidehowmuchtoinvest.
Ifyouneedhelpdeterminingyourrisktolerance,
yourregisteredrepresentativecanhelpyou
determinewhichmodelbestsuitsyourinvestment
stylebyhavingyoucompleteabriefquestionnaire.
Asset Class Allocations
InvestorProfile
Less Volatile
Underlying Fund Allocations Less Volatile
CashEquivalents
Bonds
HighYieldBondsGlobalRealEstate(REITS)
EmergingMarkets
InternationalStocks
MidCapStocksLargeCapValueStocks
LargeCapGrowthStocks
SmallCapStocks
Conservative Moderate-ConservativeYouhavealowertoleranceforshort-termmarketswings,ashorterinvestmenttimehorizon,butdesiresomegrowthpotential.
Youcanacceptamoderatelevelofrisk,haveamediuminvestmenttimehorizonandseekagrowthpotentialthatcancompetewithinflationconcerns.
AmericanCenturyVPInflationProtectionFund–ClassII
AmericanCenturyVPInternationalFund–ClassI
AmericanCenturyVPUltra® Fund–ClassI
AmericanCenturyVPValueFund–ClassI
DreyfusStockIndexFundInc.–InitialShares
FederatedPrimeMoneyFundII
FidelityVIPContrafund®Portfolio–ServiceClass2
FranklinGlobalRealEstateVIPFund(Class2)
JPMorganInsuranceTrustMidCapValuePortfolio–Class1Shares
JPMorganInsuranceTrustSmallCapCorePortfolio–Class1Shares
MFS®TotalReturnBondSeries–InitialClassShares
MFS®StrategicIncomePortfolio–InitialClassShares
ColumbiaVariablePortfolio–MidCapGrowthFund(Class2)
TempletonDevelopingMarketsVIPFund(Class2)
TempletonForeignVIPFund(Class2)
15%
61%
5%
0%
0%
5%
0%
0%9%
5%
17%5%
0%9%3%
9%
0%0%
0%
33%
21%0%0%0%
10%
44%
4%
0%
0%
11%
0%
5%16%
10%
13%7%
0%13%8%
6%
0%3%
0%
23%
14%4%0%5%
4%3%
Portfolio 115%
61%5%
5%
5%9%
0%
0%
0%
0%
Portfolio 210%
10%
44%4%
5%
11%
16%
0%
0%
0%
2
Kansas City LifeCentury II Variable Product Line
More Volatile
More Volatile
Moderate Moderate-Aggressive AggressiveYoucanacceptamoderatelevelofrisk,haveamediuminvestmenttimehorizonandseektheopportunityforlong-termmoderategrowth.
Youarewillingtoacceptaboveaveragerisk,havealongerinvestmenttimehorizonandseekhighgrowthpotential.
Youarewillingtoaccepthigherriskandcantoleratemarketswings,havealonginvestmenttimehorizonandseekhighgrowthpotential.
5%
32%
3%
3%
3%
13%
3%
7%19%
12%
0%
24%
0%
4%
4%
16%
8%
9%20%
15%
0%
10%
0%
5%
5%
19%
11%
12%21%
17%
0%
11%
3%14%
14%
0%
5%9%
10%6%
0%8%3%
12%
5%
10%8%
0%13%12%
3%
3%5%
3%17%
8%4%3%
7%
4%
7%11%
3%14%
12%0%
4%7%
7%14%
0%6%3%8%
4%
Portfolio 35%
12%
32%3%3%3%
3%7%
13%
19%
Portfolio 40%
0%
15%
24%
4%4%
8%9%
16%
20%
Portfolio 50%
0%
17%
10%
5%5%
11%12%
19%
21%
3
4
Kansas City Life’s variable products offers a wide range of investment choices managed by some of today’s top experts in money management.
Category Subaccount Name
Technology
Diversified Emerging MarketsForeign Large GrowthForeign Large ValueGlobal Real Estate
Aggressive Allocation
Utilities
Small Blend
Mid-Cap Value
Mid-Cap Growth
Large Blend
Large Value
Large Growth
Moderate Allocation
High Yield BondInflation-Protected BondIntermediate-Term BondMultisector Bond
Money Market
Retirement Income
Kansas City LifeFixed Account
Target Date
Asset Allocation/Managed Volatility
ColumbiaVariablePortfolio–SeligmanGlobalTechnologyFund(Class2)InvescoV.I.TechnologyFund–SeriesIShares
TempletonDevelopingMarketsVIPFund(Class2)AmericanCenturyVPInternationalFund–ClassITempletonForeignVIPFund(Class2)FranklinGlobalRealEstateVIPFund(Class2)
CalamosGrowthandIncomePortfolio
MFS®UtilitiesSeries–InitialClassShares
ColumbiaVariablePortfolio–SelectSmaller-CapValueFund(Class2)DreyfusOpportunisticSmallCapPortfolio–InitialSharesJPMorganInsuranceTrustSmallCapCorePortfolio–Class1Shares
JPMorganInsuranceTrustMidCapValuePortfolio–Class1Shares
AmericanCenturyVPCapitalAppreciationFund–ClassIColumbiaVariablePortfolio–MidCapGrowthFund(Class2)FranklinSmall-MidCapGrowthVIPFund(Class2)
DreyfusStockIndexFundInc.–InitialSharesDreyfusAppreciationPortfolio–InitialSharesFederatedManagedTailRiskFundII–PFidelityVIPContrafund®Portfolio–ServiceClass2InvescoV.I.CoreEquityFund–SeriesISharesJPMorganInsuranceTrustU.S.EquityPortfolio–Class1SharesMFS®ResearchSeries–InitialClassShares
AmericanCenturyVPIncome&GrowthFund–ClassIAmericanCenturyVPValueFund–ClassI
AmericanCenturyVPUltra®Fund–ClassITheDreyfusSociallyResponsibleGrowthFundInc.–InitialSharesInvescoV.I.AmericanFranchiseFund–SeriesISharesMFS®GrowthSeries–InitialClassShares
MFS®TotalReturnSeries–InitialClassShares
FederatedHighIncomeBondFundII–PAmericanCenturyVPInflationProtectionFund–ClassIIMFS®StrategicIncomePortfolio–InitialClassSharesMFS®TotalReturnBondSeries–InitialClassShares
FederatedPrimeMoneyFundII
FidelityVIPFreedomIncomePortfolio–ServiceClass2
Pleaseseeproductprospectusesfordetails.
All subaccounts are Service Class 2.FidelityVIPFreedom2010Portfolio FidelityVIPFreedom2015PortfolioFidelityVIPFreedom2020Portfolio FidelityVIPFreedom2025PortfolioFidelityVIPFreedom2030Portfolio FidelityVIPFreedom2035PortfolioFidelityVIPFreedom2040Portfolio FidelityVIPFreedom2045PortfolioFidelityVIPFreedom2050Portfolio
TOPS®ManagedRiskGrowthETFPortfolio–Class2SharesTOPS®ManagedRiskModerateGrowthETFPortfolio–Class2SharesTOPS®ManagedRiskBalancedETFPortfolio–Class2Shares
PERF G
UID
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Personal Risk Profile
Belowisalistofquestionstohelpdetermineyourriskprofilewhenrelatingtoinvestments.Pleaseanswerthefollowingquestionsandaddpointsallottedforeachanswer.MatchyourscorestotheSummaryScoringGridtodeterminethetypeofinvestmentportfolioyouranswerssuggestyouaremostsuitedfor.
Question 1What age group do you currently fall in?
•Lessthan45 5points•45–55 4points•56–65 3points•66–75 2points•Olderthan75 1point
Question 2How many years until you plan to access some or all of this investment?
•Notforatleast20years 5points•In11–19years 4points•In6–10years 3points•In1–5years 2points•Within1year 1point
Question 3For this investment, I intend to take:
•Higherriskinreturnforpotentiallygreaterreturns 5points•Moderatetohigherriskinreturnforpotentiallygreaterreturns 4points•Moderateriskinreturnforsomegrowthopportunity 3points•Lowriskinreturnforalittlegrowthopportunity 2points•Slighttonoriskinreturnforgeneralstabilityofprincipal 1point
Question 4Assuming normal market conditions, what would you expect from this investment over time?
•Togenerallykeeppacewiththestockmarket 5points•Toslightlytrailthestockmarket,butmakeagoodprofit 4points•Totrailthestockmarket,butmakeamoderateprofit 3points•Tohavesomestability,butmakemodestprofits 2points•Tohaveahighdegreeofstability,butmakesmallprofits 1point
Questions 5Suppose the stock market performs unusually poorly over the next decade. What would you expect from this investment?
•Toalsoperformpoorly 5points•Tomakeverylittleornothing 4points•Tomakealittlegain 3points•Tomakeamodestgain 2points•Tomakegains,regardlessofthestockmarketsperformance 1point
PERF G
UID
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Question 6Which of these statements would best describe your attitude about the next three year performance of this investment?
•Iunderstandalossofprincipalisarealisticpossibility. 5points•Icantoleratealoss. 4points•Icantolerateasmallloss. 3points•I’dhaveahardtimetoleratinganylosses. 2points•Ineedtoatleastseesomereturn. 1point
Question 7Which of these statements would best describe your attitude about the next three month performance of this investment?
•Iwouldn’tworryaboutmarketfluctuationsinthattimeframe. 5points•Ifmyinvestmentdeclinedgreaterthan20percentI’dbeconcerned. 4points•Ifmyinvestmentdeclinedgreaterthan10percentI’dbeconcerned. 3points•Icanonlytoleratesmallshort-termfluctuationsinmyinvestment. 2points•I’dhaveahardtimeacceptinganyinvestmentdeclines. 1point
Summary Scoring Grid
Score Model Investment Profile
28orover Aggressive Youarewillingtoaccepthigherrisk andcantoleratemarketswings,have alonginvestmenttimehorizonand seehighgrowthpotential.
21–27 Moderate-Aggressive Youarewillingtoacceptaboveaverage risk,havealongerinvestmenttime horizonandseekhighgrowthpotential.
14–20 Moderate Youcanacceptamoderatelevelof risk,haveamediuminvestmenttime horizonandseektheopportunityfor long-termmoderategrowth.
8–13 Moderate-Conservative Youcanacceptamoderatelevelofrisk, haveamediuminvestmenttimehorizon andseekagrowthpotentialthatcan competewithinflationconcerns.
0–7 Conservative Youhavealowertolerancefor short-termmarketswings,ashorter investmenttimehorizon,butdesire somegrowthpotential.
PERF G
UID
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Kansas City Life Fixed Account
MoneyintheKansasCityLifeFixedAccountispartofKansasCityLife’sGeneralAccountandismanagedbyourowninvestmentprofessionals.Fundsearnacurrentinterestratebutneverlessthantheguaranteedcreditingratestatedinthepolicycontract.Thisguaranteeisbackedbytheclaims-payingabilityofKansasCityLife.
Federated Prime Money Fund IITheFederatedPrimeMoneyFundIIisamoneymarketmutualfundthatseekstoprovidestabilityofprincipalanddailyliquidity.AninvestmentinthisfundisnotinsuredorguaranteedbytheFederalDepositInsuranceCorporation(FDIC)oranyothergovernmentagency.Althoughthefundseekstopreservethenetassetvalueofyourinvestmentat$1.00pershare,itispossibletolosemoneybyinvestinginthisfund.
Actualallocationsmayvaryfromtargetallocations.Assetallocationdoesnotguaranteefutureresults.Investmentinanindividualfundorfundsinasingleassetclassmayoutperformorunderperformanassetallocationfund.Bondinvestmentswillfluctuatewithinterestratechanges.Asinterestratesrise,bondpriceswillfall.Highyieldbondshavegreatercreditriskthanhigherqualitybonds.Small-cap,mid-capandemerging-growthcompanystocksmayberiskierandmorevolatilethanlarger,moreestablishedcompanystocks.Internationalinvestingissubjecttocurrencyfluctuationsandpoliticalchanges.Therisksofinternationalinvestmentscanbeaccentuatedwheninvestinginemergingmarkets.Realestateinvestmentsinvolveriskssuchasrefinancing,interestratefluctuations,economicimpactonindustry,changesinpropertyvalues,dependencyonmanagementskillsandriskssimilartosmallcompanyinvesting.Sectorportfoliosandconcentratedportfolioswithfewersecuritiesmaybesubjecttogreaterpricevolatility.Althoughsomeportfoliosmayhavenamesorinvestmentobjectivesthatresembleretailmutualfundsmanagedbythesamemoneymanager,theseportfolioswillnothavethesameunderlyingholdingsorperformanceastheretailmutualfunds.Investmentresultsmaybehigherorlower.
8
We’ll be with you … We’re Kansas City Life
WhenKansasCityLifemakesapromise,westandbehindit.Since1895,wehaveassistedpolicyholdersthroughworldwars,theGreatDepressionandvariousperiodsofrecessionandinflation.
KansasCityLife’sreputationisbuiltonintegrity,soundinvestmentstrategiesandhonestbusinesspractices.Tous,integrityisnotanoutdatednotionintoday’sfast-pacedworld.Itistheguidingforcebehindeverydecisionwemake.Everyproductwesellisbackedbymorethan120yearsofqualityserviceandfinancialsecurity.