UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 8-K

                Current Report Pursuant to Section 13 or 15(d) of
                           The Securities Act of 1934

        Date of Report (Date of earliest event reported): October 7, 1998

                        THE NATIONAL SECURITY GROUP, INC.
             (Exact name of registrant as specified in its charter)

                         Commission File Number: 0-18649

               Delaware                          63-1020300
         (State or other jurisdiction of      (I.R.S. Employer
          incorporation or organization)      Identification No.)

                   661 East Davis Street, Elba, Alabama        36323
               (Address of principal executive offices)       (Zip code)

                                 (334) 897-2273
              (Registrant's telephone number, including area code)



















Item 5.  Other Events

See  the  following  press  release,  dated  October  8,  1998,  announcing  the
repurchase of 219,707 shares of National Security Group common stock:

FOR IMMEDIATE RELEASE

Contact: M.L. Murdock
The National Security Group, Inc.
(334) 897-2273 Ext. 238

Elba,  Alabama (October 8, 1998)....The  National Security Group, Inc. announced
today that the Company has  repurchased a block of 219,707  shares of its common
stock,  representing  9.7% of the  total  shares  issued  and  outstanding.  The
transaction  took place on October 7, 1998.  The shares were  repurchased at the
market price of $11.51 per share.  Company  President,  J.R. Brunson stated that
the decision by the Board of Directors  to  repurchase  the shares was a sign of
confidence in the Company's future. The price paid for the shares was 58% of the
reported book value per share as of June 30, 1998,  based on Generally  Accepted
Accounting Principles.

Signatures

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

The National Security Group, Inc.

October 12, 1998   By: /S/ M.L. Murdock
                      -----------------------
                      Chief Financial Officer