SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549
                                
                            FORM 8-K
                                
                                
                         CURRENT REPORT
                                
                                
               Pursuant to Section 13 or 15 (d) of
               the Securities Exchange Act of 1934
                                
                                
               Date of Report: September 22, 1997
                (Date of earliest event reported)
                                
                                
                         CITIZENS, INC.
     (Exact name of registrant as specified in its charter)
                                
                                
                            COLORADO
                 (State or other jurisdiction of
                         incorporation)



        0-16509                              84-0755371
(Commission File Number)                   (IRS Employer
                                       Identification Number)


 400 East Anderson Lane
     Austin, Texas                             78752
 (Address of principal                       (Zip Code)
   executive offices)

                        (512) 837-7100
                 (Registrant's telephone number)
Item 1.  Changes in Control of Registrant.
     None.

Item 2.  Acquisition or Disposition of Assets.
     None.

Item 3.  Bankruptcy or Receivership.
     None.

Item 4.  Certifying Accountants.
     None.

Item 5.  Other Events.

      On  September 22, 1997, Registrant was notified that  class
action certification was granted September 15, 1997 to plaintiffs
in  a  lawsuit  (Dwain  Kirkham et al. v. American  Liberty  Life
Insurance  Company  et  al., No. 25,954, 2nd  Judicial  District,
Jackson  Parish, Louisiana) filed against American  Liberty  Life
Insurance  Company  ("ALLIC")  on August  19,  1996  and  against
Citizens,  Inc. on December 20, 1996 (collectively "Defendants").
In  the same ruling, Defendants' motion for summary judgment  and
exception  of prescription (statute of limitations) were  denied.
Defendants believe that these rulings are significantly in error.
Defendants  will  appeal these rulings, during  which  time,  the
trial  court  proceedings will be stayed.  Defendants  intend  to
vigorously defend against these claims.

     The lawsuit was filed by four individuals who purchased from
ALLIC, prior to August 1, 1986, life insurance policies on  their
children and grandchildren.  In the complaint, plaintiffs  allege
that  the insurance policies were fraudulently misrepresented  to
be  "retirement" and "insured savings" plans in which, after  six
or  seven  years,  additional premiums would be  unnecessary  and
monthly  retirement  income  would be generated  for  plaintiffs.
Plaintiffs also allege other causes of action including breach of
contract   and  are  seeking  rescission,  unspecified   damages,
interest  and  attorneys' fees.  Prior to the class certification
ruling,  rescission of the insurance policies  purchased  by  the
four plaintiffs would have resulted in a total payment of $31,000
(including  33%  for contingent attorneys fees).  The  activities
described  in  plaintiffs' complaint allegedly occurred  over  10
years  ago  with  respect to certain types of insurance  policies
sold  by an independent general agent. Prior to its recent merger
into   Registrant's  principal  subsidiary,  Citizens   Insurance
Company of America, ALLIC was a separate subsidiary of Registrant
since its acquisition in September 1995.

      As  part of the acquisition, not all historical records  of
ALLIC   were  loaded  on  the  computer  system  currently  used.
Further,  no officers or managers of ALLIC are currently employed
by  Registrant  or any of its affiliates.  Due to the  unexpected
nature  of  this  ruling, the historical records  have  not  been
examined to determine the potential magnitude of these claims  in
the  event  of  class action certification.  Management  will  be
examining  ALLIC's  historical records to determine  if  such  an
estimate can be developed.

Item 6.  Resignations of Registrant's Directors.
     None.

Item 7.  Financial Statements and Exhibits.
     None.

Item 8.  Change in Fiscal Year.
     None.

Item 9.  Sales of Equity Securities Pursuant to Regulation S

     None.

                            SIGNATURE
                                
                                
      Pursuant to the requirement of the Securities Exchange  Act
of  1934, the Registrant has duly caused this report to be signed
on  Registrant's behalf by the undersigned, duly  authorized  and
empowered officer of the Registrant.

                                      CITIZENS, INC.




                                      By:/s/ Mark A. Oliver
                                         Mark A. Oliver, FLMI
                                         President

Date:  September 24, 1997