SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.

                                    FORM 10-Q

             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934



For Quarter Ended September 30, 2004            Commission File Number: 0-9341
------------------------------------            ------------------------------



                     SECURITY NATIONAL FINANCIAL CORPORATION
                            Exact Name of Registrant.



        UTAH                                             87-0345941
---------------------------                          ---------------
(State or other jurisdiction of                 IRS Identification Number
 incorporation or organization




5300 South 360 West, Salt Lake City, Utah                  84123
-----------------------------------------               -----------
(Address of principal executive offices)                (Zip Code)



Registrant's telephone number, including Area Code     (801) 264-1060
                                                       --------------



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                              YES  X         NO
                                  ---


Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.


Class A Common Stock, $2.00 par value                   5,119,986
-------------------------------------           ----------------------
         Title of Class                         Number of Shares Outstanding as
                                                of September 30, 2004


Class C Common Stock, $.20 par value                    6,254,028
------------------------------------           --------------------------
         Title of Class                        Number of Shares Outstanding as
                                               of September 30, 2004


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<TABLE>
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                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES

                                    FORM 10-Q

                        QUARTER ENDED SEPTEMBER 30, 2004

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION



Item 1   Financial Statements                                      Page No.
------                                                             --------

         <S>                                                          <C>
         Consolidated Statement of Earnings - Nine and three months
         ended September 30, 2004 and 2003 (unaudited).................3

         Consolidated Balance Sheet - September 30, 2004,
         (unaudited)and December 31, 2003............................4-5

         Consolidated Statement of Cash Flows -
         Nine months ended September 30, 2004 and 2003 (unaudited).....6

         Notes to Consolidated Financial Statements.................7-11


Item 2   Management's Discussion and Analysis of Financial
         Condition and Results of Operations.......................11-14

Item 3   Quantitative and Qualitative Disclosures about
         Market Risk..................................................15
------

Item 4   Controls and Procedures......................................15
------

                           PART II - OTHER INFORMATION

            Other Information......................................15-19

            Signature Page............................................20

            Certifications.........................................21-23
</TABLE>

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<TABLE>
<CAPTION>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                       CONSOLIDATED STATEMENT OF EARNINGS
                                   (Unaudited)

                                                                     Nine Months Ended                  Three Months Ended
                                                                        September 30,                     September 30,
Revenues:                                                             2004           2003              2004            2003
--------                                                              ----           ----              ----            ----
<S>                                                              <C>              <C>               <C>             <C>
Insurance premiums and other considerations                      $19,316,466      $17,342,353       $6,516,327      $5,752,258
Net investment income                                             11,895,451       13,630,206        4,097,144       5,264,666
Net mortuary and cemetery sales                                    8,862,139        8,026,021        2,909,252       2,730,776
Realized gains (losses) on investments and other assets              147,563           (2,207)         142,240          (2,207)
Mortgage fee income                                               48,231,477       76,979,168       12,908,022      24,067,019
Other                                                                555,003          245,893          124,817          62,468
                                                               -------------    -------------    -------------   -------------
   Total revenues                                                 89,008,099      116,221,434       26,697,802      37,874,980
                                                               -------------    -------------    -------------   -------------

Benefits and expenses:
Death benefits                                                    10,025,473        9,768,115        3,127,355       2,725,055
Surrenders and other policy benefits                               1,049,526        1,573,695          278,353         472,603
Increase in future policy benefits                                 6,258,223        4,921,318        2,255,143       2,113,665
Amortization of deferred policy acquisition costs
   and cost of insurance acquired                                  3,403,664        3,341,614          733,774       1,345,551
General and administrative expenses:
   Commissions                                                    37,476,010       55,514,827       10,912,403      16,170,691
   Salaries                                                       10,930,883       10,579,874        3,404,155       3,473,367
   Other 14,370,675                                               16,260,512        4,517,577        6,076,615
Interest expense                                                   1,538,829        3,130,982          479,263       1,331,544
Cost of goods and services sold
   of the mortuaries and cemeteries                                1,750,055        1,699,005          612,711         575,267
                                                               -------------    -------------    -------------   -------------
   Total benefits and expenses                                    86,803,338      106,789,942       26,320,734      34,284,358
                                                               -------------    -------------    -------------   -------------

Earnings before income taxes                                       2,204,761        9,431,492          377,068       3,590,622
Income tax (expense) benefit                                        (492,324)      (3,065,751)          33,548      (1,145,524)
Minority interest in loss of subsidiary                               63,400           17,219           39,695          31,625
                                                               -------------    -------------    -------------   -------------
      Net earnings                                                $1,775,837       $6,382,960         $450,311      $2,476,723
                                                               =============    =============    =============   =============

Net earnings per common share                                          $0.31            $1.24            $0.08            $.49
                                                               =============    =============    =============   =============
   Weighted average outstanding common shares                      5,686,157        5,165,311        5,714,812       5,034,832
                                                               =============    =============    =============   =============

Net earnings per common share-assuming dilution                        $0.31            $1.19            $0.08            $.47
                                                               =============    =============    =============   =============
   Weighted average outstanding common shares
      assuming-dilution                                            5,799,244        5,378,996        5,715,207       5,252,132
                                                               =============    =============    =============   =============
See accompanying notes to consolidated financial statements
</TABLE>


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                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET


                                              September 30, 2004   December 31,
                                                 (Unaudited)          2003
                                              ------------------   ------------
Assets:
-------
Insurance-related investments:
Fixed maturity securities held
   to maturity, at amortized cost                  $68,168,717      $37,293,989
Fixed maturity securities available
   for sale, at market                              11,198,062       14,270,037
Equity securities available for sale,
   at market                                         3,815,068        3,453,444
Mortgage loans on real estate                       51,781,027       29,914,745
Real estate, net of accumulated
   depreciation and allowances for losses            9,905,672        8,519,680
Policy, student and other loans                     12,751,301       11,753,617
Short-term investments                               4,091,929        2,054,248
                                                 -------------    -------------
      Total insurance-related
         Investments                               161,711,776      107,259,760
                                                 -------------    -------------
Restricted assets of cemeteries and mortuaries       5,137,498        4,745,709
                                                 -------------    -------------
Cash                                                 9,758,999       19,704,358
                                                 -------------    -------------
Receivables:
   Trade contracts                                   7,806,017        8,600,212
   Mortgage loans sold to investors                 70,189,476      114,788,185
   Receivable from agents                            1,418,564        1,318,958
   Receivable from officers                             10,540           37,540
   Other                                             1,747,776        1,086,523
                                                 -------------    -------------
      Total receivables                             81,172,373      125,831,418
   Allowance for doubtful accounts                  (1,711,379)      (1,706,678)
                                                 -------------    -------------
   Net receivables                                  79,460,994      124,124,740
                                                 -------------    -------------
Policyholder accounts on deposit
   with reinsurer                                    6,711,325        6,795,983
Land and improvements held for sale                  8,341,719        8,387,061
Accrued investment income                            1,950,404        1,142,690
Deferred policy and pre-need acquisition costs      19,174,705       17,202,489
Property, plant and equipment, net                  10,730,299       11,009,416
Cost of insurance acquired                          14,361,324       14,980,763
Excess of cost over net assets
   of acquired subsidiaries                            683,191          683,191
Other                                                  978,658          873,424
                                                 -------------    -------------
      Total assets                                $319,000,892     $316,909,584
                                                 =============    =============






See accompanying notes to consolidated financial statements.


<PAGE>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEET (Continued)


                                                 September 30, 2004 December 31,
                                                   (Unaudited)         2003
Liabilities:
Future life, annuity, and other policy benefits   $223,838,182     $218,793,693
Unearned premium reserve                             2,190,698        1,945,203
Bank loans payable                                  11,034,389       14,422,670
Notes and contracts payable                          2,802,624        3,440,694
Deferred pre-need cemetery and funeral
   contracts revenues and estimated future
   cost of pre-need sales                           10,535,536       10,520,280
Accounts payable                                       908,387        1,274,183
Funds held under reinsurance treaties                1,213,167        1,294,589
Other liabilities and accrued expenses              10,125,667       11,171,368
Income taxes                                        11,206,345       10,914,845
                                                 -------------    -------------
      Total liabilities                            273,854,995      273,777,525
                                                 -------------    -------------

Commitments and contingencies                          --               --
                                                 -------------    -------------

Minority interest                                    3,871,786        3,956,628
                                                 -------------    -------------

Stockholders' Equity:
Common stock:
      Class A: $2.00 par value, authorized 10,000,000
         shares, issued 6,332,202 shares in 2004
         and 6,275,014 shares in 2003               12,664,404       12,550,208
      Class C: $0.20 par value, authorized
         7,500,000 shares, issued 6,329,364
         shares in 2004 and 6,469,638 shares
         in 2003                                     1,265,873        1,293,927
                                                 -------------    -------------
   Total common stock                               13,930,277       13,844,135
Additional paid-in capital                          13,813,303       13,569,582
Accumulated other comprehensive income
      (loss) and other items, net of deferred taxes  (225,503)        (437,973)
Retained earnings                                   6,860,729       15,414,681
Treasury stock at cost 1,212,216 Class A shares and
   75,336 Class C shares in 2004; 1,276,518
 Class A shares and 75,336 Class C
   shares in 2003, held by
   affiliated companies)                           (3,104,695)      (3,214,994)
                                                -------------    -------------
Total stockholders' equity                         41,274,111       39,175,431
                                                -------------    -------------
   Total liabilities and stockholders' equity    $319,000,892     $316,909,584
                                                =============    =============



See accompanying notes to consolidated financial statements.


<PAGE>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                               Nine Months Ended September 30,
                                                    2004             2003
                                                    ----             ----
Cash flows from operating activities:
      Net cash provided by operating activities    $52,172,785      $4,097,189
                                                  ------------    ------------

Cash flows from investing activities:
 Securities held to maturity:
      Purchase - fixed maturity securities         (35,298,358)     (8,080,087)
      Calls and maturities - fixed
        maturity securities                          6,013,487       7,607,038
   Securities available for sale:
      Calls and maturities - fixed
         maturity securities                                --         360,000
   Sales (purchases) of equity securities            2,662,122         (51,921)
   Purchases of short-term investments             (27,167,000)    (15,608,535)
   Sales of short-term investments                  24,542,798      16,661,402
   Sales (purchases) of restricted assets             (231,902)         41,009
   Mortgage, policy, and other loans made          (50,980,016)    (17,258,017)
   Payments received for mortgage,
      real estate, policy, and other loans          28,538,130      12,861,203
   Purchases of property, plant,
      and equipment                                   (926,685)     (1,215,617)
   Purchases of real estate                         (1,830,045)     (1,012,284)
   Purchase of subsidiary                             (304,042)             --
   Sale of real estate                                 238,502       1,230,802
                                                  ------------    ------------
      Net cash used in investing activities        (54,743,089)     (4,465,007)
                                                  ------------    ------------

Cash flows from financing activities:
   Annuity and pre-need contract receipts            3,898,324       4,422,489
   Annuity and pre-need contract withdrawals        (7,532,453)     (8,061,431)
   Repayment of bank loans and notes and
      contracts payable                             (3,851,225)     (3,174,736)
   Stock options exercised                                  --          25,200
   Sale (Purchase) of Treasury Stock                   110,299        (748,468)
                                                  ------------    ------------
      Net cash used in financing activities         (7,375,055)     (7,536,946)
                                                  ------------    ------------

Net change in cash                                  (9,945,359)     (7,904,764)

Cash at beginning of period                         19,704,358      38,199,041
                                                  ------------    ------------

Cash at end of period                               $9,758,999     $30,294,277
                                                  ============    ============

See accompanying notes to consolidated financial statements.


<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                         September 30, 2004 (Unaudited)

1.  Basis of Presentation

The accompanying  unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America for interim  financial  information and with the instructions to Form
10-Q and Article 10 of Regulation S-X.  Accordingly,  they do not include all of
the  information  and  footnotes  required by  accounting  principles  generally
accepted in the United States of America for complete financial  statements.  In
the opinion of  management,  all  adjustments  (consisting  of normal  recurring
accruals)  considered  necessary  for a fair  presentation  have been  included.
Operating  results for the three and nine months ended  September 30, 2004,  are
not  necessarily  indicative  of the results  that may be expected  for the year
ending  December 31, 2004. For further  information,  refer to the  consolidated
financial statements and footnotes thereto for the year ended December 31, 2003,
included in the Company's Annual Report on Form 10-K (file number 0-9341).

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that affect the amounts  reported in the  financial
statements  and  accompanying  notes.  Actual  results  could  differ from those
estimates.

The estimates  susceptible to  significant  change are those used in determining
future policy  benefits and claims,  valuation  allowances for mortgage loans on
real estate, the estimated future costs for pre-need sales, deferred acquisition
costs, costs of insurance acquired and unearned revenue. Although variability is
inherent in these estimates, management believes the amounts provided are fairly
stated in all material respects.

2.   Comprehensive Income

For the nine  months  ended  September  30, 2004 and 2003,  total  comprehensive
income amounted to $1,988,307 and $4,753,124, respectively.

For the three  months ended  September  30, 2004 and 2003,  total  comprehensive
income amounted to $515,113 and $2,747,319, respectively.

3.   Stock-Based Compensation

The Company  accounts for  stock-based  compensation  under the  recognition and
measurement  principles  of APB Opinion No. 25,  Accounting  for Stock Issued to
Employees,  and related  interpretations.  The Company has adopted SFAS No. 123,
"Accounting for Stock-Based Compensation".  In accordance with the provisions of
SFAS 123,  the Company has  elected to continue to apply  Accounting  Principles
Board Opinion No. 25,  "Accounting for Stock Issued to Employees"  ("APB Opinion
No. 25"), and related  interpretations in accounting for its stock option plans.
In accordance with APB Opinion No. 25, no compensation  cost has been recognized
for these plans.  Had  compensation  cost for these plans been determined  based
upon the fair value at the grant date consistent with the methodology prescribed
under SFAS No. 123, net earnings  for the nine months ended  September  30, 2004
and 2003 would have been reduced by the following:

                                              Nine Months Ended September 30,
                                             2004                       2003
                                             ----                       ----
Net earnings as reported                 $1,775,837                 $6,382,960
Deduct:  Total stock-based employee
         compensation expense determined
         under fair value based method
         for all awards, net of related
         tax effects                       --                        (133,000)
                                       -------------              -----------
Pro forma net earnings                    $1,775,837               $6,249,960
                                          ==========               ==========


<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                         September 30, 2004 (Unaudited)

                                            Nine Months Ended September 30,
                                            2004                       2003
                                            ----                       ----
      Net earnings per common share:
        Basic - as reported                $0.31                      $1.24
        Basic - pro forma                  $0.31                      $1.21
        Diluted - as reported              $0.31                      $1.19
        Diluted - pro forma                $0.31                      $1.16

4.    Earnings Per Share
     The  basic and  diluted  earnings  per share  amounts  were  calculated  as
follows:

                                            Nine Months Ended September 30,
                                            2004                      2003
                                            ----                      ----
Numerator:
      Net income                        $1,775,837                $6,382,960
                                        ==========                ==========
Denominator:
      Denominator for basic earnings per share-
        weighted-average shares          5,686,157                 5,165,311
                                      ------------               -----------

      Effect of dilutive securities:
        Employee stock options             111,590                   208,961
        Stock appreciation rights            1,497                     4,724
                                     -------------             -------------
      Dilutive potential common shares     113,087                   213,685
                                      ------------             -------------
      Denominator for diluted earnings
        per share-adjusted weighted-
        average shares and  assumed
        conversions                      5,799,244                 5,378,996
                                       ===========               ===========

      Basic earnings per share               $0.31                     $1.24
                                             =====                     =====

      Diluted earnings per share             $0.31                     $1.19
                                             =====                     =====

                                           Three Months Ended September 30,
                                          2004                         2003
                                          ----                         ----
Numerator:
      Net income                           $450,311               $2,476,723
                                           ========               ==========
Denominator:
      Denominator for basic earnings per
       share-weighted-average shares      5,714,812               5,034,832
                                         ----------              ----------

      Effect of dilutive securities:
        Employee stock options               --                     212,541
        Stock appreciation rights              395                    4,759
                                          --------               ----------
      Dilutive potential common shares         395                  217,300
                                          --------               ----------

      Denominator for diluted earnings per
        share-adjusted weighted-average
        shares and assumed conversions   5,715,207                5,252,132
                                        ==========               ==========

      Basic earnings per share                $.08                    $.49
                                             =====                   =====

      Diluted earnings per share              $.08                    $.47
                                             =====                    ====


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            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                         September 30, 2004 (Unaudited)

5.  Business Segment
                                        Life             Cemetery/                            Reconciling
                                      Insurance          Mortuary           Mortgage             Items        Consolidated
For the Nine Months Ended
September 30, 2004
<S>                                  <C>               <C>                <C>                 <C>           <C>
   Revenues from
      external sources               $25,885,019       $ 9,628,455         $53,494,625$           --         $ 89,008,099

   Intersegment revenues               6,128,267            38,336             191,158         (6,357,761)        --

   Segment profit (loss)
      before income taxes              1,621,209           695,290            (111,738)           --            2,204,761

   Identifiable assets               306,437,782        46,140,543          18,258,337        (51,835,770)    319,000,892

For the Nine Months Ended
September 30, 2003
   Revenues from
      external sources              $ 22,137,919       $ 8,880,150         $85,203,365$          --          $116,221,434

   Intersegment revenues               7,379,515         --                  --                (7,379,515)     --

   Segment profit (loss)
      before income taxes              1,114,422           135,785           8,181,285           --             9,431,492

   Identifiable assets               296,676,591        43,828,908          19,512,932        (43,819,867)    316,198,564

For the Three Months Ended
September 30, 2004
   Revenues from
      external sources              $  8,819,017       $ 3,172,449         $14,706,336$            --        $ 26,697,802

   Intersegment revenues               1,866,654            38,336              69,074         (1,974,064)        --

   Segment profit (loss)
      before income taxes                595,525           172,395            (390,852)           --              377,068

For the Three Months Ended
September 30, 2003
   Revenues from
      external sources              $  7,363,273       $ 3,051,572         $27,460,135 $         --          $ 37,874,980

   Intersegment revenues               2,675,710         --                 --                 (2,675,710)      --

   Segment profit before
      Income taxes                       511,322           225,413           2,853,887            --            3,590,622
</TABLE>


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                         September 30, 2004 (Unaudited)

6. Recent Acquisition

On March 16, 2004,  with the  approval of the  Louisiana  Insurance  Department,
Security National Life Insurance Company purchased all of the outstanding common
stock of  Paramount  Security  Life  Insurance  Company,  a Louisiana  domiciled
company (Paramount) located in Shreveport,  Louisiana.  As of December 31, 2003,
Paramount had 9,383 policies in force and approximately 29 agents.  The purchase
consideration  was $4,397,994  and was effective  January 26, 2004. For the year
ended  December 31, 2003,  Paramount  had revenues of $614,000 and net income of
$76,000. As of December 31, 2003,  statutory assets and capital and surplus were
$6,073,000 and $4,100,000, respectively. For the nine months ended September 30,
2004,  Paramount  had  revenues  of $414,000  and net income of  $97,000.  As of
September 30, 2004, statutory assets and capital and surplus were $3,146,000 and
$1,201,000, respectively.

Paramount  is licensed in the State of  Louisiana  and is  permitted  to appoint
agents who do not have a full life insurance  license.  These agents are limited
to selling  small life  insurance  policies  in the final  expense  market.  The
Company believes that with this license it will be able to expand its operations
in  Louisiana.  The  Company is  servicing  Paramount  policyholders  out of its
Jackson, Mississippi office, and has closed the Shreveport office.

7.       Recent Accounting Pronouncements

In  January  2003,  the  Financial  Accounting  Standards  Board  (FASB)  issued
Interpretation  No.  46,   "Consolidation  of  Variable  Interest  Entities,  an
Interpretation  of ARB No.  51",  and  subsequently  issued a  revision  to this
Interpretation in December 2003. This Interpretation addresses the consolidation
by  business  enterprises  of  variable  interest  entities  as  defined  in the
Interpretation.  The Interpretation  applies to those variable interest entities
considered to be  special-purpose  entities no later than December 31, 2003. The
Interpretation  must also be applied to all other variable  interest entities no
later than March 31, 2004. The adoption of Interpretation  No. 46 did not have a
material impact on the Company's financial position or results of operations.

8.       Agreement and Plan of Reorganization

On August 25, 2004, the Company through its  wholly-owned  subsidiary,  Security
National  Life  Insurance  Company,  entered  into  an  Agreement  and  Plan  of
Reorganization  with Southern  Security Life Insurance Company and SSLIC Holding
Company, a wholly-owned  subsidiary of Security National Life Insurance Company.
Upon  completion  of the proposed  Agreement and Plan of  Reorganization,  SSLIC
Holding  Company will be merged with and into Southern  Security Life  Insurance
Company which merger, if consummated, would result in (i) Southern Security Life
Insurance  Company becoming a wholly-owned  subsidiary of Security National Life
Insurance Company and (ii) the Company's  unaffiliated  stockholders of Southern
Security Life Insurance  Company becoming  entitled to receive $3.84 in cash for
each issued and outstanding share of Southern Security Life Insurance Company 's
common stock. The Agreement and Plan of Reorganization was unanimously  approved
by all of the directors of the Company.

If the proposed  merger is  completed,  the separate  existence of SSLIC Holding
Company  will cease as Southern  Security  Life  Insurance  Company  will be the
surviving corporation in the merger and will continue to be governed by the laws
of the State of  Florida,  and the  separate  corporate  existence  of  Southern
Security  Life  Insurance  Company will continue  unaffected by the merger.  The
shares of  common  stock  owned by  Southern  Security  Life  Insurance  Company
unaffiliated  stockholders immediately prior to the effective time of the merger
will be exchanged for cash.


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                         September 30, 2004 (Unaudited)

The total amount of cash to be paid by Security  National Life Insurance Company
to the unaffiliated holders of Southern Security Life Insurance Company's common
stock,  holding  an  aggregate  of  490,816  shares of  Southern  Security  Life
Insurance  Company's common stock, pro rata to their respective share ownership,
will be $3.84 per share of common  stock,  or an  aggregate of  $1,884,733.  The
490,816 shares of Southern  Security Life Insurance  Company's common stock that
Security  National  Life  Insurance  Company  has  agreed to  purchase  from the
unaffiliated  stockholders of Southern Security Life Insurance Company represent
23.3% of Southern Security Life Insurance  Company's  outstanding common shares,
or all of the outstanding  shares. The unaffiliated  stockholders do not include
Security  National Life Insurance  Company and SSLIC Holding  Company.  Security
National Life Insurance  Company and SSLIC Holding Company own 76.7% of Southern
Security Life Insurance Company's outstanding common shares.

If the merger is  completed,  each share of  Southern  Security  Life  Insurance
Company's  common  stock  held by the  unaffiliated  stockholders  prior  to the
effective  time of the merger  will,  by virtue of the merger  and  without  any
action on the part of the  stockholder  thereof,  automatically  be canceled and
converted into the right to receive cash in the amount equal to $3.84 per share.
In  addition,  each  unaffiliated  holder of Southern  Security  Life  Insurance
Company's  common shares  immediately  prior to the effective time of the merger
will,  by  virtue  of the  merger  and  without  any  action on the part of such
stockholder,  cease being a  stockholder  of Southern  Security  Life  Insurance
Company  and  automatically  receive  cash in an amount  equal to the  number of
shares  of  common  stock  held of  record  by  such  stockholder  at such  time
multiplied by $3.84 per share.

The obligations of Security National Life Insurance  Company,  SSLIC Holding and
Southern  Security Life  Insurance  Company to complete the proposed  merger are
subject to the  satisfaction of certain  conditions,  including (i) the approval
and adoption of the Agreement and Plan of  Reorganization  by Southern  Security
Life Insurance Company's stockholders; (ii) all authorizations, consents, orders
or  approvals  of the  insurance  departments  of the states of Florida and Utah
shall have been obtained; and (iii) on the closing date the dissenting shares of
Southern Security Life Insurance  Company's common stock shall not exceed 10% of
the outstanding common shares of Southern Security Life Insurance Company.

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations
        -----------------------------------------------------------------------

Overview

The Company's  operations  over the last several years  generally  reflect three
trends or events which the Company expects to continue:  (i) increased attention
to "niche" insurance  products,  such as the Company's funeral plan policies and
traditional  whole-life  products;   (ii)  emphasis  on  cemetery  and  mortuary
business;  and  (iii)  capitalizing  on  historically  lower  interest  rates by
originating and refinancing mortgage loans.

During the nine months ended  September  30, 2004,  Security  National  Mortgage
Company  ("SNMC")  experienced  a decrease  in revenue and  expenses  due to the
decrease  in loan volume of its  operations  as a result of  increased  interest
rates.  SNMC is a mortgage  lender  incorporated  under the laws of the State of
Utah.  SNMC is approved  and  regulated  by the Federal  Housing  Administration
(FHA),  a department  of the U.S.  Department  of Housing and Urban  Development
(HUD), to originate mortgage loans that qualify for government  insurance in the
event of default by the borrower.  SNMC obtains loans primarily from independent
brokers and  correspondents.  SNMC funds the loans from  internal cash flows and
lines of  credit  from  financial  institutions.  SNMC  receives  fees  from the
borrowers and other  secondary fees from third party  investors who purchase the
loans from SNMC.  SNMC primarily sells all of its loans to third party investors
and does not  retain  servicing  to  these  loans.  SNMC  pays the  brokers  and
correspondents  a commission  for loans that are  brokered  through  SNMC.  SNMC
originated and sold 8,790  ($1,368,134,000) and 14,487  ($2,125,995,000)  loans,
respectively, for the nine months ended September 30, 2004 and 2003.


<PAGE>



Results of Operations

Nine Months Ended September 30, 2004 Compared to Nine Months Ended September 30,
2003

Total revenues  decreased by $27,213,000,  or 23.4%, to $89,008,000 for the nine
months ended  September 30, 2004,  from  $116,221,000  for the nine months ended
September  30,  2003.  Contributing  to this  decrease in total  revenues  was a
$28,748,000  reduction in mortgage fee income and a $1,735,000  reduction in net
investment income.

Insurance premiums and other considerations  increased by $1,974,000,  or 11.4%,
to $19,316,000 for the nine months ended  September 30, 2004,  from  $17,342,000
for the  comparable  period in 2003.  This  increase  was  primarily  due to the
additional  insurance  premiums that were  realized on new  insurance  sales and
including premiums from policies acquired from Paramount Security Life Insurance
Company.

Net investment  income  decreased by $1,735,000 or 12.7%, to $11,895,000 for the
nine months ended September 30, 2004, from $13,630,000 for the comparable period
in 2003. This decrease was primarily  attributable to reduced borrower  interest
income on fewer mortgage loans originated by Security  National Mortgage Company
during the nine months ended September 30, 2004.

Net mortuary and cemetery sales  increased by $836,000,  or 10.4%, to $8,862,000
for the nine months ended September 30, 2004, from $8,026,000 for the comparable
period in 2003.  This  increase was  primarily  due to  additional  cemetery and
mortuary sales during the nine months ended September 30, 2004.

Mortgage fee income  decreased by $28,748,000,  or 37.3%, to $48,231,000 for the
nine months ended September 30, 2004, from $76,979,000 for the comparable period
in 2003. This decrease was primarily attributable to a decrease in the number of
loan  originations  during the nine months ended  September 30, 2004,  due to an
increase  in interest  rates  resulting  in fewer  borrowers  refinancing  their
mortgage loans.

Total benefits and expenses were  $86,803,000,  or 97.5% of total revenues,  for
the nine months ended September 30, 2004, as compared to $106,790,000,  or 91.9%
of total revenues,  for the comparable  period in 2003. The lower margin in 2004
is due to  fixed  expenses,  which  did not  decrease  proportionally  with  the
reduction in revenue.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy benefits increased by an aggregate of $1,070,000, or 6.6%, to $17,333,000
for the  nine  months  ended  September  30,  2004,  from  $16,263,000,  for the
comparable period in 2003. This increase was primarily the result of an increase
in reserves for policyholders.

Amortization of deferred policy acquisition costs and cost of insurance acquired
increased by $62,000, or 1.8%, to $3,404,000 for the nine months ended September
30, 2004, from $3,342,000,  for the comparable  period in 2003. This increase in
amortized expenses was in line with actuarial assumptions.

General and  administrative  expenses  decreased by  $19,577,000,  or 23.8%,  to
$62,778,000 for the nine months ended  September 30, 2004, from  $82,355,000 for
the comparable period in 2003. This decrease primarily resulted from a reduction
in  commissions  due to fewer  mortgage  loan  originations  having been made by
Security  National  Mortgage  Company during the nine months ended September 30,
2004.

Interest expense  decreased by $1,592,000,  or 50.9%, to $1,539,000 for the nine
months ended September 30, 2004, from $3,131,000,  for the comparable  period in
2003.  This  decrease was  primarily  due to reduced  warehouse  lines of credit
required for fewer  mortgage loan  originations  by Security  National  Mortgage
Company during the nine months ended September 30, 2004.


<PAGE>



Cost of goods and services sold of the mortuaries  and  cemeteries  increased by
$51,000,  or 3.0%, to $1,750,000,  for the nine months ended September 30, 2004,
from  $1,699,000  for the comparable  period in 2003.  This increase was in line
with increased sales for the nine months ended September 30, 2004.

Third Quarter of 2004 Compared to Third Quarter of 2003

Total revenues decreased by $11,177,000,  or 29.5%, to $26,698,000 for the three
months ended  September 30, 2004,  from  $37,875,000  for the three months ended
September  30,  2003.  Contributing  to this  decrease in total  revenues was an
$11,159,000  decrease in mortgage  fee income and a  $1,168,000  decrease in net
investment income.

Insurance premiums and other considerations  increased by $764,000, or 13.3%, to
$6,516,000 for the three months ended  September 30, 2004,  from  $5,752,000 for
the comparable period in 2003. This increase was primarily due to the additional
insurance  premiums  that were  realized on new  insurance  sales and  including
premiums from policies acquired from Paramount Security Life Insurance Company.

Net investment  income decreased by $1,168,000,  or 22.2%, to $4,097,000 for the
three months ended September 30, 2004, from $5,265,000 for the comparable period
in 2003. This decrease was primarily  attributable to reduced borrower  interest
income on fewer mortgage loans originated by Security  National Mortgage Company
during the third quarter of 2004.

Net mortuary and cemetery  sales  increased by $178,000,  or 6.5%, to $2,909,000
for  the  three  months  ended  September  30,  2004,  from  $2,731,000  for the
comparable  period  in 2003.  This  increase  was  primarily  due to  additional
cemetery and mortuary sales.

Mortgage fee income  decreased by $11,159,000,  or 46.4%, to $12,908,000 for the
three months ended  September  30, 2004,  from  $24,067,000  for the  comparable
period in 2003.  This decrease was primarily  attributable  to a decrease in the
number of loan originations  during the third quarter of 2004 due to an increase
in interest rates resulting in fewer borrowers refinancing their mortgage loans.

Total benefits and expenses were $26,321,000, or 98.6% of total revenues for the
three months ended  September 30 2004, as compared to  $34,284,000,  or 90.5% of
total  revenues for the  comparable  period in 2003. The lower margin in 2004 is
due to fixed expenses,  which did not decrease proportionally with the reduction
in revenue.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy  benefits  increased by an aggregate of $350,000,  or 6.6%, to $5,661,000
for  the  three  months  ended  September  30,  2004,  from  $5,311,000  for the
comparable period in 2003. This increase was primarily the result of an increase
in reserves for policyholders.

Amortization of deferred policy acquisition costs and cost of insurance acquired
decreased  by  $612,000,  or  45.5%,  to  $734,000  for the three  months  ended
September 30, 2004,  from  $1,346,000  for the comparable  period in 2003.  This
decrease was in line with actuarial assumptions.

General and  administrative  expenses  decreased  by  $6,887,000,  or 26.8%,  to
$18,834,000 for the three months ended September 30, 2004, from  $25,721,000 for
the comparable period in 2003. This decrease primarily resulted from a reduction
in  commissions  due to fewer  mortgage  loan  originations  having been made by
Security National Mortgage Company during the third quarter of 2004.

Interest  expense  decreased  by $852,000,  or 64.0%,  to $479,000 for the three
months ended September 30, 2004,  from  $1,331,000 for the comparable  period in
2003.  This  decrease was  primarily  due to reduced  warehouse  lines of credit
required for fewer  mortgage loan  originations  by Security  National  Mortgage
Company.


<PAGE>



Cost of goods and services sold of the mortuaries  and  cemeteries  increased by
$37,000,  or 6.5%,  to $613,000 for the three months ended  September  30, 2004,
from $575,000 for the comparable  period in 2003. This increase was in line with
increased sales during the third quarter of 2004.

Liquidity and Capital Resources

The Company's life insurance subsidiaries and cemetery and mortuary subsidiaries
realize  cash flow  from  premiums,  contract  payments  and  sales on  personal
services  rendered  for  cemetery  and  mortuary  business,  from  interest  and
dividends  on  invested  assets,  and from the  proceeds  from the  maturity  of
held-to-maturity  investments,  or  sale  of  other  investments.  The  mortgage
subsidiary realizes cash flow from fees generated by originating and refinancing
mortgage loans and interest  earned on mortgages sold to investors.  The Company
considers these sources of cash flow to be adequate to fund future  policyholder
and  cemetery and mortuary  liabilities,  which  generally  are  long-term,  and
adequate to pay current policyholder claims,  annuity payments,  expenses on the
issuance of new policies,  the maintenance of existing  policies,  debt service,
and operating expenses.

The  Company  attempts  to  match  the  duration  of  invested  assets  with its
policyholder  and  cemetery  and  mortuary  liabilities.  The  Company  may sell
investments other than those  held-to-maturity  in the portfolio to help in this
timing;  however,  to date, that has not been necessary.  The Company  purchases
short-term  investments  on a  temporary  basis  to  meet  the  expectations  of
short-term requirements of the Company's products.

The  Company's  investment  philosophy  is intended to provide a rate of return,
which will persist during the expected duration of policyholder and cemetery and
mortuary liabilities regardless of future interest rate movements.

The Company's  investment  policy is to invest  predominantly  in fixed maturity
securities,  mortgage  loans,  and  the  warehousing  of  mortgage  loans  on  a
short-term  basis before  selling the loans to investors in accordance  with the
requirements and laws governing the life insurance subsidiaries.  Bonds owned by
the life insurance  subsidiaries  amounted to  $79,367,000,  as of September 30,
2004,  compared to $51,564,000 as of December 31, 2003.  This represents 49% and
48% of the total  insurance-related  investments  as of September 30, 2004,  and
December  31,  2003,  respectively.  Generally,  all  bonds  owned  by the  life
insurance  subsidiaries  are  rated by the  National  Association  of  Insurance
Commissioners.  Under this  rating  system,  there are six  categories  used for
rating bonds. At September 30, 2004 and December 31, 2003, 2%  ($1,464,000)  and
3%  ($1,739,000)  of the  Company's  total  investment in bonds were invested in
bonds  in  rating   categories   three   through  six,   which  are   considered
non-investment grade.

The Company has  classified  certain of its fixed income  securities,  including
high-yield  securities,  in its  portfolio  as  available  for  sale,  with  the
remainder  classified as held to maturity.  However,  in accordance with Company
policy,  any such securities  purchased in the future will be classified as held
to maturity.  Business conditions,  however, may develop in the future which may
indicate a need for a higher level of liquidity in the investment portfolio.  In
that event the  Company  believes  it could  sell  short-term  investment  grade
securities before liquidating higher-yielding longer-term securities.

The Company is subject to risk based capital guidelines established by statutory
regulators  requiring  minimum  capital  levels based on the  perceived  risk of
assets,  liabilities,  disintermediation,  and business  risk.  At September 30,
2004,  and  December  31,  2003,  the life  insurance  subsidiary  exceeded  the
regulatory criteria.

The Company's total  capitalization  of  stockholders'  equity and bank debt and
notes  payable  was  $55,111,000  as of  September  30,  2004,  as  compared  to
$57,039,000  as of  December  31,  2003.  Stockholders'  equity as a percent  of
capitalization  increased  to 75%  as of  September  30,  2004,  from  69% as of
December 31, 2003.


<PAGE>



Lapse  rates  measure the amount of  insurance  terminated  during a  particular
period. The Company's lapse rate for life insurance in 2003 was 8.6% as compared
to a rate of 10.7% for 2002. The 2004 lapse rate to date has been  approximately
the same as 2003.

At September 30, 2004, $27,260,000 of the Company's  consolidated  stockholders'
equity  represents  the statutory  stockholders'  equity of the  Company's  life
insurance subsidiaries. The life insurance subsidiaries cannot pay a dividend to
its parent company without the approval of insurance regulatory authorities.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

There have been no  significant  changes since the annual report Form 10-K filed
for the year ended December 31, 2003.

Item 4.   Controls and Procedures

     a) Evaluation of disclosure controls and procedures

          Under the  supervision and with the  participation  of our management,
     including  principal  executive officer and principal financial officer, we
     evaluated the  effectiveness  of the design and operation of our disclosure
     controls and procedures,  as defined in Rules 13a-15(e) and 15d-15(e) under
     the  Securities  Exchange Act of 1934, as of September  30, 2004.  Based on
     this  evaluation,   our  principal  executive  officer  and  our  principal
     financial  officer  concluded  that, as of the end of the period covered by
     this report,  our  disclosure  controls and  procedures  were effective and
     adequately designed to ensure that the information required to be disclosed
     by us in the reports we file or submit under the Securities Exchange Act of
     1934 is  recorded,  processed,  summarized  and  reported  within  the time
     periods  specified in  applicable  rules and forms.  b) Changes in internal
     controls over financial reporting

          During the quarter ended September 30, 2004,  there has been no change
     in our  internal  control  over  financial  reporting  that has  materially
     affected,  or is  reasonably  likely to  materially  affect,  our  internal
     control over financial reporting.

                           Part II Other Information:

Item 1.        Legal Proceedings

An action was brought  against the Company in May 2001,  by Glenna  Brown Thomas
individually  and as personal  representative  of the Estate of Lynn W. Brown in
the Third  Judicial  Court,  Salt Lake  County,  Utah.  The action  asserts that
Memorial Estates delivered to Lynn W. Brown six stock certificates  representing
2,000 shares in 1970 and 1971.  Mr. Brown died in 1972.  It is asserted  that at
the time the 2,000 shares were issued and  outstanding,  such  represented  a 2%
ownership  of  Memorial  Estates.  It is  alleged  Mr.  Brown  was  entitled  to
preemptive  rights and that after the  issuance of the stock to Mr.  Brown there
were further issuances of stock without providing written notice to Mr. Brown or
his estate with respect to an opportunity to purchase more stock.

It is also asserted  among other things that Thomas "has the right to a transfer
of Brown's shares to Thomas on defendants'  (which  includes  Security  National
Financial  Corporation  as  well  as  Memorial  Estates,   Inc.)  books  and  to
restoration of Brown's  proportion of share ownership in Memorial at the time of
his death by issuance and delivery to Thomas of sufficient shares of defendant's
publicly  traded and  unrestricted  stock in  exchange  for the 2,000  shares of
Memorial stock and payment of all dividends from the date of Thomas's demand, as
required by Article XV of the Articles of  Incorporation."  The formal discovery
cutoff was January 15, 2004. The Company


<PAGE>



has been  verbally  informed  that Thomas will dismiss the case but such has not
been communicated in writing.  Until the foregoing actually happens, the Company
intends to vigorously defend the matter, including an assertion that the statute
of limitations bars the claims.

An action was  brought  against  Southern  Security  Life  Insurance  Company by
National Group Underwriters,  Inc. ("NGU") in state court in the State of Texas.
The case was removed by the Company to the United States  District Court for the
Northern District of Texas, Fort Worth Division,  with Civil No.  4:01-CV-403-E.
An amended  complaint was filed on or about July 18, 2001. The amended complaint
asserted  that NGU had a contract  with the  Company  wherein  NGU would  submit
applications for certain  policies of insurance to be issued by the Company.  It
was alleged that disputes had arisen  between NGU and the Company with regard to
the calculation and payment of certain commissions as well as certain production
bonuses.

NGU  alleged  that it had been  damaged  far in  excess of the  $75,000  minimum
jurisdictional  limits of the federal court. NGU also sought attorney's fees and
costs  as well as  prejudgment  and post  judgment  interest.  A second  amended
complaint  and a third amended  complaint,  which  included a fraud claim,  were
filed. A motion was filed by the Company to dismiss the third amended complaint,
including   the  fraud  claim.   The  court  denied  the  motion.   The  Company
counterclaimed for what it claimed to be a debit balance owing to it pursuant to
the  relationship  between  the  parties  (the amount  subject to  reduction  as
premiums are received).  The Company also sought to recover  attorney's fees and
costs,  as well as  punitive  damages  on three of its  causes  of action in the
counterclaim.

Following initial discovery, the federal case was dismissed by stipulation.  The
matter was refiled in Texas state court, Tarrant County, Case No. 348 195490 02.
The  claims  of the  respective  parties  are  essentially  the same as those in
federal court, which claims of NGU (estimated to be $2,133,625 through September
30, 2004) include  fraudulent  inducement  relative to entering into a contract,
fraud,  breach of contract as to commissions  and production  bonuses as well as
policy  fees,  certain  dues and  debits of other  agents,  attorney's  fees and
exemplary  damages as well as seeking an accounting  with the  appointment of an
auditor and contesting the interest charges.  Certain discovery has taken place,
including  depositions,  since the filing again in state court.  A trial was set
for late October,  2004,  and the Company had filed  another  motion for partial
summary judgment. However, as a result of mediation, a settlement was reached in
the case,  which was completed on September 24, 2004.  Pursuant to completion of
the settlement, the litigation was dismissed with prejudice.

The settlement  required  Southern  Security Life Insurance Company to pay NGU a
$265,000  cash  payment by  September  24,  2004,  which  approximated  interest
Southern Security Life Insurance Company charged on NGU's account.  In addition,
Southern  Security  Life  Insurance  Company  is  required  to pay  the  regular
commission  and  policy  fee  renewals  to NGU.  Finally,  NGU has the  right to
undertake  an audit  and  review  of the  policy  fees  Southern  Security  Life
Insurance  Company has paid NGU during the period from May 1, 2001  through July
31, 2004,  provided the audit is completed  within 75 days of the  September 24,
2004 effective date of the Settlement  Agreement  between Southern Security Life
Insurance  Company and NGU. If it is determined,  as a result of the audit, that
the amount of policy fees was not fully  credited  during such period,  Southern
Security Life Insurance Company is required to pay NGU any such policy fees owed
without interest thereon.

The Company is not a party to any other legal  proceedings  outside the ordinary
course of its business or to any other legal  proceedings,  which,  if adversely
determined, would have a material adverse effect on the Company or its business.

Item 2.        Changes in Securities and Use of Proceeds

               NONE


<PAGE>



Item 3.        Defaults Upon Senior Securities

               NONE

Item 4.        Submission of Matters to a Vote of Security Holders

               At the annual  stockholders  meeting held on July 16,  2004,  the
               following matters were acted upon: (i) seven directors consisting
               of George R.  Quist,  J. Lynn  Beckstead,  Jr.,  Scott M.  Quist,
               Charles L. Crittenden,  Dr. Robert G. Hunter,  H. Craig Moody and
               Norman G.  Wilbur  were  elected to serve  until the next  annual
               stockholders  meeting or until their  respective  successors  are
               elected and qualified  (for George R. Quist,  Class A and Class C
               shares,  9,160,589 votes were cast in favor of election, no votes
               were cast against election and there were 57,615 abstentions; for
               J. Lynn Beckstead, Jr., Class A shares only, 3,623,683 votes were
               cast in favor of election,  no votes were cast  against  election
               and there were 53,232  abstentions;  for Scott M. Quist,  Class A
               and  Class C  shares,  9,160,429  votes  were  cast in  favor  of
               election,  no votes  were cast  against  election  and there were
               57,775  abstentions;  for Charles L.  Crittenden,  Class A shares
               only, 3,623,828 votes were cast in favor of election and no votes
               were cast against election and there were 53,087 abstentions; for
               Dr. Robert G. Hunter, Class A and Class C shares, 9,163,578 votes
               were cast in favor of election,  no votes cast  against  election
               and there were 54,626  abstentions;  for H. Craig Moody,  Class A
               and C shares,  9,161,821 votes were cast in favor of election, no
               votes cast against  election  and there were 56,383  abstentions;
               for Norman G. Wilbur, Class A and Class C shares, 9,162,933 votes
               were  cast in  favor of  election,  no votes  were  cast  against
               election and there were 55,271 abstentions;  (ii) the appointment
               of Tanner + Co. as the Company's independent  accountants for the
               fiscal year ended December 31, 2004 was ratified (with  9,174,484
               votes cast for appointment,  35,375 votes against appointment and
               8,345 abstentions).

Item 5.        Other Information

               On  August  25,  2004,  the  Company  through  its   wholly-owned
               subsidiary,  Security  National Life Insurance  Company,  entered
               into an  Agreement  and  Plan  of  Reorganization  with  Southern
               Security  Life  Insurance  Company and SSLIC Holding  Company,  a
               wholly-owned  subsidiary  of  Security  National  Life  Insurance
               Company.  Upon  completion of the proposed  Agreement and Plan of
               Reorganization,  SSLIC  Holding  Company  will be merged with and
               into Southern  Security Life Insurance  Company which merger,  if
               consummated, would result in (i) Southern Security Life Insurance
               Company becoming a wholly-owned  subsidiary of Security  National
               Life  Insurance  Company  and  (ii)  the  Company's  unaffiliated
               stockholders of Southern Security Life Insurance Company becoming
               entitled to receive $3.84 in cash for each issued and outstanding
               share of  Southern  Security  Life  Insurance  Company  's common
               stock. The Agreement and Plan of  Reorganization  was unanimously
               approved by all of the directors of the Company.

               If the proposed  merger is completed,  the separate  existence of
               SSLIC  Holding  Company  will  cease as  Southern  Security  Life
               Insurance Company will be the surviving corporation in the merger
               and will  continue  to be  governed  by the laws of the  State of
               Florida,   and  the  separate  corporate  existence  of  Southern
               Security Life Insurance  Company will continue  unaffected by the
               merger.  The shares of common  stock owned by  Southern  Security
               Life  Insurance  Company  unaffiliated  stockholders  immediately
               prior to the  effective  time of the merger will be exchanged for
               cash.


<PAGE>



               The total  amount of cash to be paid by  Security  National  Life
               Insurance  Company  to  the  unaffiliated   holders  of  Southern
               Security  Life  Insurance   Company's  common  stock  holding  an
               aggregate of 490,816  shares of Southern  Security Life Insurance
               Company's  common  stock,  pro  rata to  their  respective  share
               ownership,  will be  $3.84  per  share  of  common  stock,  or an
               aggregate of $1,884,733.  The 490,816 shares of Southern Security
               Life Insurance Company's common stock that Security National Life
               Insurance  Company has agreed to purchase  from the  unaffiliated
               stockholders   of  Southern   Security  Life  Insurance   Company
               represent  23.3% of Southern  Security Life  Insurance  Company's
               outstanding common shares, or all of the outstanding  shares. The
               unaffiliated  stockholders do not include Security  National Life
               Insurance  Company and SSLIC Holding Company.  Security  National
               Life  Insurance  Company and SSLIC  Holding  Company own 76.7% of
               Southern  Security Life Insurance  Company's  outstanding  common
               shares.

               If the merger is completed,  each share of Southern Security Life
               Insurance   Company's  common  stock  held  by  the  unaffiliated
               stockholders  prior to the effective  time of the merger will, by
               virtue of the  merger and  without  any action on the part of the
               stockholder thereof, automatically be canceled and converted into
               the right to receive cash in the amount equal to $3.84 per share.
               In addition,  each unaffiliated  holder of Southern Security Life
               Insurance  Company's  common  shares  immediately  prior  to  the
               effective  time of the merger  will,  by virtue of the merger and
               without any action on the part of such stockholder, cease being a
               stockholder  of  Southern  Security  Life  Insurance  Company and
               automatically  receive  cash in an amount  equal to the number of
               shares of common stock held of record by such stockholder at such
               time multiplied by $3.84 per share.

               The  obligations  of Security  National Life  Insurance  Company,
               SSLIC  Holding and Southern  Security Life  Insurance  Company to
               complete the proposed  merger are subject to the  satisfaction of
               certain  conditions,  including  (i) the approval and adoption of
               the Agreement  and Plan of  Reorganization  by Southern  Security
               Life Insurance Company's  stockholders;  (ii) all authorizations,
               consents, orders or approvals of the insurance departments of the
               states of Florida and Utah shall have been obtained; and (iii) on
               the closing date the dissenting  shares of Southern Security Life
               Insurance  Company's  common  stock  shall not  exceed 10% of the
               outstanding  common shares of Southern  Security  Life  Insurance
               Company.

Item 6.        Exhibits and Reports on Form 8-K

 (a)     Exhibits:
3.1. Articles of Restatement of Articles of Incorporation (7)

 3.2. Amended
Bylaws (10)

     4.1. Specimen  Class A Stock  Certificate  (1)
     4.2.  Specimen Class C Stock Certificate (1)
     4.3  Specimen  Preferred Stock Certificate and Certificate of Designation
          of Preferred Stock (1)
     10.1 Restated and Amended Employee Stock Ownership Plan and Trust Agreement
          (1)
     10.2 1993 Stock Option Plan (3)
     10.3 2000 Director Stock Option Plan (4)
     10.4 2003 Stock Option Plan (9)
     10.5 Deferred Compensation Agreement with George R. Quist (2)
     10.6 Promissory Note with George R. Quist (5)
     10.7 Deferred Compensation Plan (6)
     10.8 Coinsurance  Agreement between Security National Life Insurance
          Company and Acadian (7)
     10.9 Assumption  Agreement among Acadian,  Acadian  Financial Group,  Inc.,
          Security National Life Insurance Company and the Company (7)



<PAGE>



     10.10 Asset Purchase  Agreement  among  Acadian,  Acadian  Financial
           Group, Inc., Security National Life Insurance Company and the
           Company (7)
     10.11 Promissory Note with Key Bank of Utah (8)
     10.12 Loan and Security Agreement with Key Bank of Utah (8)
     10.13 Stock Purchase and Sale  Agreement  with Ault Glazer & Co. Investment
           Management LLC (10)
     10.14 Stock  Purchase  Agreement  with  Paramount  Security  Life
           Insurance Company (11)
     10.15 Reinsurance   Agreement   between  Security  National  Life
           Insurance Company and Guaranty Income Life Insurance Company (12)
     10.16 Employment agreement with J. Lynn Beckstead, Jr. (12)
     10.17 Employment agreement with Scott M. Quist (13)
     10.18 Agreement  and Plan of  Reorganization  among  Security  National
           Life Insurance Company, SSLIC Holding Company, and Southern Security
           Life Insurance Company (14)
     31.1 Certification pursuant to 18 U.S.C. Section 1350 as enacted by Section
          302 of the Sarbanes-Oxley Act of 2002
     31.2 Certification pursuant to 18 U.S.C. Section 1350 as enacted by Section
          302 of the Sarbanes-Oxley Act of 2002
     32.1 Certification  pursuant to 18 U.S.C. Section 1350, as adopted pursuant
          to Section 906 of the Sarbanes-Oxley Act of 2002
     32.2 Certification  pursuant to 18 U.S.C. Section 1350, as adopted pursuant
          to Section 906 of the  Sarbanes-Oxley  Act of 2002
     ------------------
     (1)  Incorporated by reference from Registration  Statement on Form S-1, as
          filed on September 29, 1987
     (2)  Incorporated by reference from Annual Report on Form 10-K, as filed on
          September 30, 1989
     (3)  Incorporated by reference from Annual Report on Form 10-K, as filed on
          September 30, 1994
     (4)  Incorporated   by  reference  from  Schedule  14A   Definitive   Proxy
          Statement,  filed August 29, 2000,  relating to the  Company's  Annual
          Meeting of Shareholders
     (5)  Incorporated by reference from Annual Report on Form 10-K, as filed on
          April 16, 2001
     (6)  Incorporated by reference from Annual Report on Form 10-K, as filed on
          April 3, 2002
     (7)  Incorporated  by  reference  from  Report  on Form  8-K/A  as filed on
          January 8, 2003
     (8)  Incorporated by reference from Annual Report on Form 10-K, as filed on
          April 15, 2003
     (9)  Incorporated   by  reference  from  Schedule  14A   Definitive   Proxy
          Statement, Filed on September 5, 2003 relating to the Company's Annual
          Meeting of Shareholders
     (10) Incorporated  by  reference  from  Report  on Form  10-Q,  as filed on
          November 14, 2003
     (11) Incorporated  by reference  from Report on Form 8-K, as filed on March
          29, 2004
     (12) Incorporated  by reference from Report on Form 10-K, as filed on March
          30, 2004
     (13) Incorporated by reference from Report on Form 10-Q, as filed on August
          13, 2004
     (14) Incorporated  by reference from Report on Form 8-K, as filed on August
          30, 2004

Subsidiaries of the Registrant

    (b) Reports on Form 8-K:

          Current Report on Form 8-K, as filed on August 30, 2004 Current Report
          on Form 8-K/A, as filed on August 31, 2004


<PAGE>


                                   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.


                                   REGISTRANT

                     SECURITY NATIONAL FINANCIAL CORPORATION
                                   Registrant



DATED: November 15, 2004              By:  George R. Quist,
                                           ----------------
                                           Chairman of the Board and Chief
                                           Executive Officer
                                           (Principal Executive Officer)


DATED: November 15, 2004              By:  Stephen M. Sill
                                           ---------------
                                           Vice President, Treasurer and
                                           Chief Financial Officer
                                           (Principal Financial and
                                           Accounting Officer)


<PAGE>


                                  Exhibit 31.1

                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                                  AS ENACTED BY
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002



I, George R. Quist, certify that:

     1. I have reviewed this quarterly report on Form 10-Q of Security  National
Financial Corporation.

     2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

     3. Based on my knowledge,  the financial  statements,  and other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

     4. The  registrant's  other  certifying  officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15-d-15(e)) for the registrant and have:

          (a) Designed such disclosure  controls and procedures,  or caused such
     disclosure controls and procedures to be designed under our supervision, to
     ensure that material information relating to the registrant,  including its
     consolidated  subsidiaries,  is made  known to us by  others  within  those
     entities,  particularly  during the period  covered in which this report is
     being prepared;

          (b)  Evaluated  the  effectiveness  of  the  registrant's   disclosure
     controls and procedures and presented in this report our conclusions  about
     the effectiveness of the disclosure controls and procedures,  as of the end
     of the period covered by this report based on such evaluation; and

          (c) Disclosed in this report any change in the  registrant's  internal
     control over financial reporting that occurred during the registrant's most
     recent fiscal quarter (the  registrant's  fourth fiscal quarter in the case
     of an annual report) that has materially affected,  or is reasonably likely
     to materially  affect,  the  registrant's  internal  control over financial
     reporting; and

     5. The registrant's other certifying  officers and I have disclosed,  based
on our most recent evaluation of internal control over financial  reporting,  to
the  registrant's  auditors  and the audit  committee of  registrant's  board of
directors (or persons performing the equivalent functions):

          (a) All significant deficiencies and material weaknesses in the design
     or  operation  of  internal  control  over  financial  reporting  which are
     reasonably  likely to adversely affect the registrant's  ability to record,
     process, summarize and report financial information; and

          (b) Any fraud,  whether or not material,  that involves  management or
     other employees who have a significant  role in the  registrant's  internal
     control over financial reporting.

Date: November 15, 2004

                                          By:      George R. Quist
                                                   Chairman of the Board and
                                                   Chief Executive Officer


<PAGE>


                                  Exhibit 31.2

                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                                  AS ENACED BY
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002


I, Stephen M. Sill, certify that:

     1. I have reviewed this quarterly report on Form 10-Q of Security  National
Financial Corporation.

     2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

     3. Based on my knowledge,  the financial  statements,  and other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

     4. The  registrant's  other  certifying  officer and I are  responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15-d-15(e)) for the registrant and have:

          (a) Designed such disclosure  controls and procedures,  or caused such
     disclosure controls and procedures to be designed under our supervision, to
     ensure that material information relating to the registrant,  including its
     consolidated  subsidiaries,  is made  known to us by  others  within  those
     entities,  particularly  during the period  covered in which this report is
     being prepared;

          (b)  Evaluated  the  effectiveness  of  the  registrant's   disclosure
     controls and procedures and presented in this report our conclusions  about
     the effectiveness of the disclosure controls and procedures,  as of the end
     of the period covered by this report based on such evaluation; and

          (c) Disclosed in this report any change in the  registrant's  internal
     control over financial reporting that occurred during the registrant's most
     recent fiscal quarter (the  registrant's  fourth fiscal quarter in the case
     of an annual report) that has materially affected,  or is reasonably likely
     to materially  affect,  the  registrant's  internal  control over financial
     reporting; and

     5. The registrant's other certifying  officers and I have disclosed,  based
on our most recent evaluation of internal control over financial  reporting,  to
the  registrant's  auditors  and the audit  committee of  registrant's  board of
directors (or persons performing the equivalent functions):

          (a) All significant deficiencies and material weaknesses in the design
     or  operation  of  internal  control  over  financial  reporting  which are
     reasonably  likely to adversely affect the registrant's  ability to record,
     process, summarize and report financial information; and

          (b) Any fraud,  whether or not material,  that involves  management or
     other employees who have a significant  role in the  registrant's  internal
     control over financial reporting.

Date:  November 15, 2004

                                          By:  Stephen M. Sill
                                               Vice President, Treasurer and
                                               Chief Financial Officer


<PAGE>



                                  EXHIBIT 32.1
                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In  connection  with  the  Quarterly  Report  of  Security  National   Financial
Corporation  (the  "Company") on Form 10-Q for the period  ending  September 30,
2004, as filed with the  Securities  and Exchange  Commission on the date hereof
(the  "Report"),  I, George R. Quist,  Chief  Executive  Officer of the Company,
certify,  pursuant to 18 U.S.C.  ss.1350,  as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

          (1)  the Report fully complies with the  requirements of Section 13(a)
               or 15(d) of the Securities Exchange Act of 1934; and

          (2)  the information  contained in the Report fairly presents,  in all
               material  respects,   the  financial   condition  and  result  of
               operations of the Company.

By:      George R. Quist
         Chief Executive Officer
         November 15, 2004


                                  EXHIBIT 32.2
                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In  connection  with  the  Quarterly  Report  of  Security  National   Financial
Corporation  (the  "Company") on Form 10-Q for the period  ending  September 30,
2004, as filed with the  Securities  and Exchange  Commission on the date hereof
(the  "Report"),  I, Stephen M. Sill,  Chief  Financial  Officer of the Company,
certify,  pursuant to 18 U.S.C.  ss.1350,  as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

          (1)  the Report fully complies with the  requirements of Section 13(a)
               or 15(d) of the Securities Exchange Act of 1934; and

          (2)  the information  contained in the Report fairly presents,  in all
               material  respects,   the  financial   condition  and  result  of
               operations of the Company.

By:      Stephen M. Sill
         Chief Financial Officer
         November 15, 2004