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: August 19, 1998
                (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.  Changes in Registrant's Certifying Accountants.

     None.

Item 5.  Other Events.

      On  August  20, 1998, Registrant was notified that  it  was
successful in its appeal of the class action certification in the
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.  On August 19, 1998, the Louisiana  Second
Circuit  Court  of Appeals vacated the class action certification
by  the  trial  court,  and  the case was  remanded  for  further
proceedings consistent with the decision of the Court of Appeals.

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"  plans  in  which, after  six  or  seven  years,
additional  premiums would be unnecessary and monthly  retirement
income  of varying amounts for unspecified periods of time  would
be  paid  to plaintiffs.  Plaintiffs also allege other causes  of
action  including breach of contract and are seeking  rescission,
unspecified damages, interest and attorneys' fees.

      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.   Registrant and Citizens Insurance  Company  of
America will continue to vigorously defend against the claims  of
these  four  plaintiffs.   The  registrant  is  unaware  of   any
threatened  or  pending  claims  of  a  similar  nature  to  this
litigation.

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:  August 20, 1998