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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0000865058-07-000004.txt : 20070214
<SEC-HEADER>0000865058-07-000004.hdr.sgml : 20070214
<ACCEPTANCE-DATETIME>20070214181137
ACCESSION NUMBER:		0000865058-07-000004
CONFORMED SUBMISSION TYPE:	5
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061231
FILED AS OF DATE:		20070214
DATE AS OF CHANGE:		20070214

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MURDOCK MICHEY L
		CENTRAL INDEX KEY:			0001239472

	FILING VALUES:
		FORM TYPE:		5
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18649
		FILM NUMBER:		07624122

	MAIL ADDRESS:	
		STREET 1:		661 EAST DAVIS
		CITY:			ELBA
		STATE:			AL
		ZIP:			36323

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NATIONAL SECURITY GROUP INC
		CENTRAL INDEX KEY:			0000865058
		STANDARD INDUSTRIAL CLASSIFICATION:	LIFE INSURANCE [6311]
		IRS NUMBER:				631020300
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		661 E DAVIS ST
		CITY:			ELBA
		STATE:			AL
		ZIP:			36323
		BUSINESS PHONE:		2058972273
</SEC-HEADER>
<DOCUMENT>
<TYPE>5
<SEQUENCE>1
<FILENAME>mmurdockf5_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>5</documentType>

    <periodOfReport>2006-12-31</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <form3HoldingsReported>0</form3HoldingsReported>

    <form4TransactionsReported>0</form4TransactionsReported>

    <issuer>
        <issuerCik>0000865058</issuerCik>
        <issuerName>NATIONAL SECURITY GROUP INC</issuerName>
        <issuerTradingSymbol>NSEC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001239472</rptOwnerCik>
            <rptOwnerName>MURDOCK MICHEY L</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>661 EAST DAVIS</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>ELBA</rptOwnerCity>
            <rptOwnerState>AL</rptOwnerState>
            <rptOwnerZipCode>36323</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chief Operating Officer</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1442</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>21843</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By 401-K Plan</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Phantom Stock Units</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>17.25</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-02-13</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>5</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>826</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>17.25</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F3"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Phantom Stock Units</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>826</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>16341</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Shares held in 401-K plan are in units.  Number of unit shares shown is as of 12/31/2004 and rounded to the nearest unit.
 Until 2005, owners of 401-K unit shares could not vote their units.</footnote>
        <footnote id="F2">The phantom stock units were awarded under the nonqualified deferred compensation plan in which directors could elect to
 defer their directors' fees by receiving phantom stock units payable in cash upon separation from service from the board.
 The plan was frozen on 12/31/2004.   These shares were acquired during the fiscal year pursuant to the dividend reinvestment
 component of the nonqualified deferred compensation plan which was frozen on 12/31/2004.</footnote>
        <footnote id="F3">Upon separation from service  from the Board, phantom stock units will be settled in cash  at the then current market price
 of common stock.</footnote>
    </footnotes>

    <remarks>Pertains to phantom stock plan in which election to defer fees is not a reportable event under Section 16, however
 acquisitions of phantom stock pursuant to the election are reportable.  These deferrals are exempt transactions for purposes
 of Section 16b-3(d).</remarks>

    <ownerSignature>
        <signatureName>Brian R. McLeod, Attorney-in-fact</signatureName>
        <signatureDate>2007-02-14</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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