WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 7
<MULTIPLIER> 1000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               JUN-30-1998
<DEBT-HELD-FOR-SALE>                           424,609
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                       2,759
<MORTGAGE>                                       7,427
<REAL-ESTATE>                                    4,763
<TOTAL-INVEST>                                 474,306
<CASH>                                           7,362
<RECOVER-REINSURE>                              63,593
<DEFERRED-ACQUISITION>                   <F1>   51,480
<TOTAL-ASSETS>                                 795,034
<POLICY-LOSSES>                                496,904
<UNEARNED-PREMIUMS>                                  0
<POLICY-OTHER>                                   7,602
<POLICY-HOLDER-FUNDS>                            4,864
<NOTES-PAYABLE>                                 30,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        51,367
<OTHER-SE>                               <F2>   10,065
<TOTAL-LIABILITY-AND-EQUITY>                   795,034
<PREMIUMS>                                       9,900
<INVESTMENT-INCOME>                             15,849
<INVESTMENT-GAINS>                                  46
<OTHER-INCOME>                           <F3>    4,998
<BENEFITS>                               <F4>   17,632
<UNDERWRITING-AMORTIZATION>                      2,224
<UNDERWRITING-OTHER>                             7,656
<INCOME-PRETAX>                                  3,310
<INCOME-TAX>                                     1,269
<INCOME-CONTINUING>                              2,041
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     2,041
<EPS-PRIMARY>                                      .33
<EPS-DILUTED>                                      .30
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0


<F1>Includes $26,937 of present value of future profits.
<F2>Includes retained earnings of $7,535 and other comprehensive income of
    $2,530.
<F3>Includes policy charges of $3,152 amortization of negative goodwill of
    $694 and fees from separate accounts of $1,152.
<F4>Includes benefits and claims of $8,767 and interest credited on 
    interest-sensitive annuities and other financial products of $8,865.
[TYPE]     EX-10.36
[TEXT]
                 MANAGEMENT SERVICE AGREEMENT

     THIS  AGREEMENT  is  made this _____ day of _________, 1998, between
Savers Life Insurance Company,  a  North  Carolina  stock  life insurance
company ("Savers") and Standard Management Corporation, an Indiana  stock
life insurance holding company ("Company").

     WHEREAS, the parties to this Agreement are affiliated companies, and

     WHEREAS,  Savers desires that certain management services, and other
services in connection  with production of business, investment of assets
and financial and regulatory  reporting  for  Savers  be  provided by the
Company, and

     WHEREAS, the Company is willing to provide such services:

     NOW, THEREFORE, for and in consideration of the promises, agreements
and  undertakings  to  be  assumed  and performed by each of the  parties
hereto as hereinafter set forth, the parties hereto agree as follows:

     1.   The Company shall, subject to the direction of Savers' Board of
Directors, provide to Savers management  and other services in connection
with the production of business, investment  of  assets and financial and
regulatory reporting.  The Company acknowledges the activities enumerated
herein are subject to specific statutory and regulatory  requirements and
agrees that all sales, investment and reporting management services shall
be  in  accordance  with  the  statutes  and regulations controlling  the
conduct of insurance business in North Carolina.

     2.   All  information  made  available by  Savers  or  that  becomes
available to the Company by virtue  of this Agreement or the relationship
created  by this Agreement shall be held  in  strict  confidence  by  the
Company.

     3.   The  provision  of  any  of  the  services  described  in  this
Agreement may be terminated by either party at any time, without penalty,
upon  giving  written  notice,  which  notice shall be given no less than
thirty (30) days prior to such termination.

     4.   In consideration for the services  provided  in paragraphs 1, 2
and  3,  Savers agrees to pay the Company a monthly fee of  Eighty  Three
Thousand Three Hundred Thirty-Three and 00/100 Dollars ($83,333.00) which
is due and  payable within ten (10) days from the receipt of the invoice.
The Company and  Savers  agree  that  the  charges  for services outlined
herein  are  fair and reasonable and reflect both the value  of  services
rendered and reasonable,  customary and usual charges therefor.  Both the
Company and Savers will maintain  their  books  and  records  to disclose
clearly and accurately the nature and detail of all transactions  between
the parties pursuant to this Agreement.  THE ABOVE NOTHWITHSTANDING,  THE
COMPANY  AGREES  THAT  IT  SHALL  NOT  RECEIVE, NOR SHALL SAVERS HAVE ANY
OBLIGATION TO PAY, A MONTHLY FEE UNLESS AND UNTIL THE CAPITAL AND SURPLUS
OF SAVERS SHALL EXCEED $7,000,000 AFTER PAYMENT OF SUCH FEE.

     5.   The Agreement shall be governed  by the laws of North Carolina,
both as to interpretation and performance.

     6.   Except  as  otherwise  specified  in  paragraph  4  above,  all
balances  due  between the parties shall be settled  within  thirty  (30)
days.

     7.   This Agreement  shall  inure  to the benefit of, and be binding
upon, the parties and their respective successors  and  assigns.  Neither
party may assign its rights and obligations hereunder.

     8.   Management service fees paid pursuant to this Agreement  may be
adjusted  annually  by  the Board of Directors of Savers and the Company.
Savers shall give the North  Carolina  Insurance Commissioner at least 30
days notice of any proposed changes to the  terms  or  monthly management
fees provided in this Agreement.

     9.   This Agreement may be modified by written request  of the North
Carolina Commissioner in the event of financial hardship of Savers.

     10.  The  Company shall make available for audit and review  by  the
Commissioner of  Insurance all books and records pertaining to management
of Savers.

     11.  Any  notice  or  other  communication  requested  or  permitted
hereunder  shall  be  in  writing  and  shall  be  delivered  personally,
telegraphed,   telexed,   sent  by  facsimile  transmission  or  sent  by
certified, registered or express  mail, postage prepaid.  Any such notice
shall be deemed given when so delivered  personally, telegraphed, telexed
or sent by facsimile transmission or, if mailed,  two days after the date
of deposit in the United States mails, as follows:

     if to Savers:
          Savers Life Insurance Company of Indiana
          8064 North Point Boulevard
          Winston-Salem, North Carolina   27106
          Attention:  Raymond J. Ohlson, President

     if to Company:
          Standard Management Corporation
          9100 Keystone Crossing, Suite 600
          Indianapolis, Indiana  46240
          Attention: Ronald D. Hunter
                    Chairman of the Board

     if to the Commissioner:
          North Carolina Commissioner
          North Carolina Department of Insurance
          Dobbs Building, 430 N. Salisbury Street
          Raleigh, North Carolina  27611

Any  party  may by notice given in accordance with this  Section  to  the
other parties  designate another address or person for receipt of notices
hereunder.

     12.  Any waiver  by  any  party  of  any provision of this Agreement
shall not imply a subsequent waiver of that or any other provision.

     13.  This Agreement shall constitute the  entire  agreement  between
the parties for the objects and purposes set forth herein.

     IN  WITNESS  WHEREOF, the parties hereto executed this Agreement  on
the date first above written.

                         STANDARD MANAGEMENT CORPORATION


                         By:  ______________________________________
                              Ronald D. Hunter
                              Chairman of the Board



                         SAVERS LIFE INSURANCE COMPANY


                         By: ______________________________________
                              Raymond J. Ohlson
                              President









H:\USER\JAMESCAR\DOCS\SAVERS\MANAGSER.DOC





</TABLE>