<PAGE>
                                             UNITED STATES
                                  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 March 31, 1998                          Commission File 
                                                          Number: 0-9341
          


                               SECURITY NATIONAL  FINANCIAL CORPORATION
                                       Exact Name of Registrant.


           UTAH                              87-0345941
--------------------------------        --------------------
(State or other jurisdiction             IRS Identification Number
of 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  XX         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          3,673,430     
--------------------------------------    ---------------------
          Title of Class                  Number of Shares
                                          Outstanding as of
                                          March 31, 1998

Class C Common Stock, $.20 par value           5,142,902     
-------------------------------------     ---------------------
          Title of Class                  Number of Shares
                                          Outstanding as of
                                          March 31, 1998

<PAGE>
<TABLE>
<CAPTION>

                       SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                                               FORM 10Q

                                     QUARTER ENDED MARCH 31, 1998

                                           TABLE OF CONTENTS


                                    PART I - FINANCIAL INFORMATION



Item 1. Financial Statements                                   Page No.
          <S>                                                    <C>
          Consolidated Statements of Earnings - Three
          months ended March 31, 1998 and 1997 . . . . . . . . .  3

          Consolidated Balance Sheets - March 31, 1998
          and December 31, 1997. . . . . . . . . . . . . . .. . . 4-5

          Consolidated Statements of Cash Flow -
          Three months ended March 31, 1998 and 1997 . . .  . . . 6-7

          Notes to Consolidated Financial
          Statements . . . . . . . . . . . . . . . . . . . . .  . 8-9


Item 2 Management's Discussion and Analysis. . . . . . . . . . . .9-13

                                      PART II - OTHER INFORMATION
  
          Other Information. . . . . . . . . . . . . . . . . . . .14

          Signature Page . . . . . . . . . . . . . . . . . . . . .15
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                      SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES

                       Consolidated Statements of Earnings

                                          Three Months Ended March 31,
                                     1998                             1997
                                  (Unaudited)                      (Unaudited)
                                  -----------                      ----------
<S>                             <C>                               <C>
Revenues:
Insurance premiums and
  other considerations           $1,558,065                        $1,472,623 
Net investment income             1,844,154                         1,773,427 
Net mortuary and cemetery sales   2,439,292                         2,500,363 
Realized gains on investments
  and other assets                   36,046                            36,027
Mortgage fee income               1,903,946                         1,626,119 
Other                                25,922                            10,932 
                                 ----------                       -----------
  Total revenue                   7,807,425                         7,419,491 

Benefits and expenses:
Death benefits                      510,348                           528,424
Surrenders and other
   policy benefits                  299,489                           266,454 
Increase in future policy
   benefits                         754,390                           742,452 
Amortization of deferred policy
  acquisition costs and cost of
  insurance acquired                296,527                           314,828 
General and administrative expenses:
  Commissions                     1,554,933                         1,270,293 
  Salaries                        1,263,270                         1,266,044 
  Other                           1,658,126                         1,511,638 
Interest expense                    185,298                           277,522 
Cost of goods and services sold
  of the mortuaries and cemeteries  670,879                           731,862
                                 ----------                        ----------
  Total benefits and expenses     7,193,260                         6,909,517 
                                 ----------                        ----------

Earnings before income taxes        614,165                           509,974 
Income tax expense                 (135,255)                         (117,294)
                                 ----------                        ----------
  Net earnings                   $  478,910                        $  392,680 
                                 ==========                        ==========

Net earnings per common share         $0.11                             $0.10 
                                      =====                             =====

  Weighted average outstanding
    common shares                 4,185,555                          3,970,486
                                 ==========                         ==========
Net earnings per common
   share-assuming dilution            $0.11                              $0.10 
                                      =====                              =====

  Weighted average outstanding
   common shares-assuming
   dilution                       4,185,555                          4,003,497
                                 ==========                         ==========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>

                         SECURITY NATIONAL FINANCIAL CORPORATION
                                    AND SUBSIDIARIES

                               Consolidated Balance Sheets


                               March 31, 1998             December 31,
                                 (Unaudited)                  1997   
                               --------------             ------------
<S>                              <C>                     <C>
Assets:
-------
Insurance-related investments:
Fixed maturity securities
  held to maturity,
  at amortized cost              $ 49,025,464             $ 49,784,898 
Equity securities available
  for sale, at market               4,861,816                4,831,813 
Mortgage loans on real estate       9,151,866                8,307,237 
Real estate, net of
  accumulated depreciation          7,580,197                7,559,725 
Policy loans                        2,872,452                2,882,711 
Other loans                            73,696                   84,147 
Short-term investments              2,657,487                3,698,941 
                               --------------             ------------
  Total insurance-
   related investments             76,222,978               77,149,472 
Restricted assets of
  cemeteries and mortuaries         3,964,374                3,889,785 
Cash                                  984,448                3,408,179 
Receivables:
  Trade contracts                   4,256,272                4,323,011 
 Mortgage loans sold
  to investors                     16,642,938               11,398,432 
  Receivable from agents              834,406                  816,657 
  Other                               942,394                  364,782 
                                -------------              -----------
     Total receivables             22,676,010               16,902,882 
  Allowance for doubtful
   accounts                        (1,709,530)              (1,679,090)
                                -------------              -----------
  Net receivables                  20,966,480               15,223,792 
Land and improvements
   held for sale                    8,509,353                8,466,886 
Accrued investment income           1,061,886                1,001,998 
Deferred policy acquisition
    costs                           4,474,324                4,433,841 
Property, plant and
   equipment, net                   6,880,948                6,641,562 
Cost of insurance acquired          3,290,295                3,370,018 
Excess of cost over net assets
  of acquired subsidiaries          1,495,997                1,554,505 
Other                                 328,286                  311,841 
                                 ------------             ------------
     Total assets                $128,179,369             $125,451,879 
                                 ============             ============
</TABLE>

See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>

                   SECURITY NATIONAL FINANCIAL CORPORATION
                             AND SUBSIDIARIES

                   Consolidated Balance Sheets (Continued)


                                   March 31, 1998               December 31,
                                     (Unaudited)                    1997    
                                   --------------               ------------
<S>                                 <C>                       <C>
Liabilities:
-----------
Future life, annuity, and other
  policy benefits                     $ 78,088,316             $ 77,890,080 
Line of credit for financing
  of mortgage loans                      2,000,000                  100,000 
Bank loans payable                       5,986,607                6,097,351 
Notes and contracts payable              3,698,202                3,783,566 
Estimated future costs of 
  pre-need sales                         6,031,217                5,994,241 
Payable to endowment care fund              99,915                  121,370 
Accounts payable                         1,113,283                1,204,029 
Other liabilities and 
  accrued expenses                       1,803,375                1,632,897 
Income taxes                             3,368,491                3,233,415 
                                       -----------               ----------
     Total liabilities                 102,189,406              100,056,949 

Commitments and contingencies

Stockholders' Equity:
Common stock:
  Class A: $2 par value, authorized
    10,000,000 shares, issued
    4,333,423 shares in 1998
    and 4,326,588 shares in 1997         8,666,924                8,653,176 
  Class C: $0.20 par value,
   authorized 7,500,000 shares,
   issued 5,199,119 shares in
   1998 and 5,200,811 shares
   in 1997                               1,039,746                1,040,162 
Total common stock                       9,706,670                9,693,338 
Additional paid-in capital               9,146,786                9,133,454 
Unrealized appreciation
  of investments,
  net of deferred taxes                    920,399                  830,939 
Retained earnings                        8,012,168                7,533,259 
Treasury stock at cost
  (659,993 Class A shares
   and 56,217 Class C shares
  in 1998 and 1997 held by
  affiliated companies)                 (1,796,060)              (1,796,060)
                                       -----------             ------------
Total stockholders' equity              25,989,963               25,394,930 
                                      ------------             ------------
  Total liabilities and
   stockholders' equity               $128,179,369             $125,451,879 
                                      ============             ============
</TABLE>

See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>

                        SECURITY NATIONAL FINANCIAL CORPORATION
                                   AND SUBSIDIARIES

                         Consolidated Statements of Cash Flow

                                               Three Months Ended March 31,
                                             1998                     1997
                                          (Unaudited)              (Unaudited)
                                         -----------               ----------
<S>                                     <C>                      <C>
Cash flows from operating activities:
  Net earnings                          $   478,910               $  392,680 
  Adjustments to reconcile net earnings
   to net cash (used in) provided by 
      operating activities:
   Realized gains on investments and
      other assets                          (36,047)                 (36,027)
   Depreciation                             220,079                  184,914 
   Provision for losses on accounts
     and loans receivable                    30,440                     --    
   Amortization of goodwill, premiums,
     and discounts                           44,163                  (12,343)
   Provision for income taxes               135,077                   115,743 
     Policy acquisition costs deferred     (257,287)                 (193,555)
     Policy acquisition costs amortized     216,804                   250,040 
     Cost of insurance acquired amortized    79,723                    64,787 
     Change in assets and liabilities net of
     effects from purchases and disposals of
     subsidiaries:
       Land and improvements held for sale  (42,467)                  (12,434)
       Future life and other benefits       516,945                   521,370 
       Receivables for mortgage 
         loans sold                      (5,244,506)                4,091,482 
       Other operating assets and
         liabilities                       (483,039)                 (145,711)
                                        -----------                ----------
         Net cash (used in)
           provided by 
           operating activities          (4,341,206)                5,220,946 

Cash flows from investing activities:
  Securities held to maturity:
    Purchase - fixed maturity
      securities                          (524,563)                    --
    Calls and maturities - fixed
       maturity securities               1,299,923                  1,024,503
  Securities available for sale:
    Sales - equity securities               92,402                     --
  Purchases of short-term
    investments                         (1,158,545)               (1,573,589)
  Sales of short-term investments        2,200,000                     --    
  Purchases of restricted assets           (25,340)                  (83,514)
  Mortgage, policy, and other
    loans made                          (2,150,000)                 (263,248)
  Payments received for mortgage,
     policy, and other loans             1,282,791                 1,864,740 
  Purchases of property, plant,
     and equipment                        (382,022)                  (60,385)
  Purchases of real estate                (102,354)                     --   
                                      ------------               -----------
      Net cash provided by
      investing activities                 532,292                   908,507


                      SECURITY NATIONAL FINANCIAL CORPORATION
                                 AND SUBSIDIARIES

                   Consolidated Statements of Cash Flow (Continued)


                                             Three Months Ended March 31,
                                          1998                      1997
                                       (Unaudited)               (Unaudited)
                                      -----------                ----------
Cash flows from financing activities:
  Annuity receipts                        646,503                 580,740 
  Annuity withdrawals                    (965,212)               (966,217)
  Repayment of bank loans and
     notes and contracts payable         (196,108)               (320,012)
  Net change in line of credit
     for financing of mortgage loans    1,900,000              (1,211,890)
                                      -----------             -----------
  Net cash provided by (used in) 
     financing activities               1,385,183              (1,917,379)
                                      -----------             -----------
Net change in cash                     (2,423,731)              4,212,074 
Cash at beginning of period             3,408,179               3,301,084 
                                      -----------             -----------
Cash at end of period                 $   984,448              $7,513,158 
                                      ===========             ===========

See accompanying notes to the financial statements.
</TABLE>


<PAGE>

                SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                       Notes to Consolidated Financial Statements
                                    March 31, 1998
                                      (Unaudited)

1.  Basis of Presentation

The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles 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 generally accepted accounting principles 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 months ended March 31, 1998, are not
necessarily indicative of the results that may be expected for the
year ending December 31, 1998.  For further information, refer to
the consolidated financial statements and footnotes thereto for the
year ended December 31, 1997, included in the Company's Annual
Report on Form 10-K (file number 0-9341).

2.   Comprehensive Income

As of January 1, 1998, the Company adopted Statement 130, Reporting
Comprehensive Income.  Statement 130 establishes new rules for the
reporting and display of comprehensive income and its components;
however, the adoption of this Statement had no impact on the
Company's net income or stockholders' equity.  Statement 130
requires unrealized gains or losses on the Company's available-for-
sale securities, which prior to adoption were reported separately in
stockholders' equity, to be included in other comprehensive income. 

During the first quarter of 1998 and 1997, total comprehensive
income amounted to $568,370 and $232,923, respectively.

3.   Capital Stock

In accordance with SFAS 128, the basic and diluted earnings per
share amounts were calculated as follows:
<TABLE>
<CAPTION>

                                         Three Months Ended March 31,
                                      1998                         1997
                                     ------                       -----
<S>                               <C>                         <C>
Numerator:
  Net income                      $  478,910                   $  392,680

Denominator:
  Denominator for
    basic earnings per
    share-- weighted-average
    shares                         4,185,555                    3,970,486

  Effect of 
    dilutive securities:
    Employee stock
      options                         --                           25,493
    Stock appreciation
     rights                           --                            7,518
                                  ----------                  -----------
  Dilutive potential
    common shares                     --                           33,011


3.   Capital Stock (Continued)

 Denominator
   for diluted 
   earnings per
   share-adjusted 
   weighted-average
   shares and assumed
     conversions                 4,185,555                      4,003,497
                                ==========                     ==========
 Basic earnings 
   per share                         $0.11                          $0.10
                                     =====                          =====
 Diluted earnings 
   per share                         $0.11                          $0.10
                                     =====                          =====
</TABLE>

There are no dilutive effects on net income for purpose of this
calculation.
<PAGE>

                                 MANAGEMENT'S DISCUSSION AND ANALYSIS

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, annuities, and limited
pay accident policies; (ii) emphasis on high margin cemetery and
mortuary business; and (iii) capitalizing on the strong economy in
the intermountain west by originating and refinancing mortgage
loans.

Results of Operations

First Quarter 1998 Compared to First Quarter 1997

Total revenues increased by $388,000, or 5.2%, to $7,807,000 for the
three months ended March 31, 1998, from $7,419,000 for the three
months ended March 31, 1997.  Contributing to this increase in total
revenues was an $85,000 increase in insurance premiums and other
considerations, a $71,000 increase in net investment income and a
$278,000 increase in mortgage fee income.  These increases were
partially offset by a $61,000 decrease in net mortuary and cemetery
sales.

Insurance premiums and other considerations increased by $85,000, or
5.8%, to $1,558,000 for the three months ended March 31, 1998, from
$1,473,000 for the comparable period in 1997.  This increase was
primarily due to an increase in policies in force from new business.

Net investment income increased by $71,000, or 4.0%, to $1,844,000
for the three months ended March 31, 1998, from $1,773,000 for the
comparable period in 1997.  This increase was attributable to the
Company maintaining smaller short-term investment balances and
warehousing more mortgage loans during the first quarter of 1998 as
compared to the first quarter of 1997.

Net mortuary and cemetery sales decreased by $61,000, or 2.4%, to
$2,439,000 for the three months ended March 31, 1998, from
$2,500,000 for the comparable period in 1997.  This decrease is
primarily related to an increase in sales returns and allowances on
pre-need sales.  Pre-need and at-need sales before sales return and
allowances increased 1% and 5%, respectively, over the prior period.

<PAGE>

Mortgage fee income increased by $278,000, or 17.1%, to $1,904,000
for the three months ended March 31, 1998, from $1,626,000 for the
comparable period in 1997.  This increase was primarily attributable
to more loan originations during the first quarter of 1998 from the
refinancing of residential loans brought about by lower interest
rates.

Total benefits and expenses were $7,193,000, or 92.1% of total
revenues for the three months ended March 31 1998, as compared to
$6,910,000, or 93.1% of total revenues for the three months ended
March 31, 1997.

Death benefits, surrenders and other policy benefits and increase in
future policy benefits increased by $27,000, or 1.8%, to $1,564,000
for the three months ended March 31, 1998, from $1,537,000 for the
comparable period in 1997. This increase was primarily the result of
reserve increases due to more policies in force during the first
quarter in 1998 as compared to the first quarter of 1997.

Amortization of deferred policy acquisition costs and cost of
insurance acquired decreased by $18,000, or  5.7%, to $297,000, for
the three months ended March 31, 1998, from $315,000 for the
comparable period in 1997.  This decrease is in line with the
actuarial assumptions.

General and administrative expenses increased by $428,000, or 10.6%,
to $4,476,000 for the three months ended March 31, 1998, from
$4,048,000 for the comparable period in 1997.  This increase in
general and administrative expenses primarily resulted from an
increase in commissions and other expenses due to more mortgage loan
originations having been made by the Company's mortgage subsidiary.

Interest expense decreased by $93,000, or 33.5%, to $185,000 for the
three months ended March 31, 1998, from $278,000 for the comparable
period in 1997.  This decrease was primarily due to the reduction of
long-term debt.
 
Cost of goods and services sold of the mortuaries and cemeteries
decreased by $61,000, or 8.3%, to $671,000 for the three months
ended March 31, 1998, from $732,000 for the comparable period in
1997.  This decrease was consistent with the decrease in net
mortuary and cemetery sales.

Liquidity and Capital Resources

The Company's life insurance subsidiary 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

<PAGE>

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 predominately in fixed
maturity securities, mortgage loans, and warehouse mortgage loans on
a short-term basis before selling the loans to investors in
accordance with the requirements and laws governing the life
insurance subsidiary.  Bonds owned by the life insurance subsidiary
amounted to $48,938,000 at amortized cost as of March 31, 1998
compared to $49,697,000 at amortized cost as of December 31, 1997.
This represents 64% of the total insurance-related investments as of
March 31, 1998 and December 31, 1997.  Generally, all bonds owned by
the life insurance subsidiary are rated by the National Association
of Insurance Commissioners.  Under this rating system, there are six
categories used for rating bonds.  At March 31, 1998, 4.12%
($2,018,000) and at December 31, 1997, 4.06% ($2,018,000) 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 intends to hold its fixed income securities, including
high-yield securities, in its portfolio 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 high-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 March 31, 1998 and December 31, 1997, the life
subsidiary exceeded the regulatory criteria.

The Company's total capitalization of stockholders' equity and bank
debt and notes payable was $35,675,000 as of March 31, 1998 as
compared to $34,659,000 as of March 31, 1997.  Stockholders' equity
as a percent of capitalization increased to 72.9% as of March 31,
1998 from 68.4% as of March 31, 1997 and as a percent of assets
increased to 20.3% from 19.2%, respectively.

Lapse rates measure the amount of insurance terminated during a
particular period.  The Company's lapse rate for life insurance in
1997 was 11.7% as compared to a rate of 12.0% for 1996.  The 1998
lapse rate is approximately the same as 1997.

At March 31, 1998, $12,052,000 of the Company's consolidated
stockholders' equity represents the statutory stockholders' equity
of the Company's life insurance subsidiary.  The life insurance
subsidiary cannot pay a dividend to its parent company without the
approval of insurance regulatory authorities.

Acquisitions
------------
In February 1997, the Company purchased all of the outstanding
shares of common stock of Crystal Rose Funeral Home, Inc. for a
total consideration of $382,000, which included a note to the former
owner in the amount of $297,000.

On April 27, 1998, the Company entered into an Acquisition Agreement
(the "Agreement") with Consolidare Enterprises, Inc., a Florida
corporation, ("Consolidare"), and certain shareholders of
Consolidare for the purchase of all of the outstanding shares of

<PAGE>

common stock of Consolidare.  Consolidare owns approximately 57.4%
of the outstanding shares of common stock of Southern Security Life
Insurance Company, a Florida corporation ("SSLIC"), and all of the
outstanding shares of stock of Insuradyne Corp., a Florida
corporation ("Insuradyne").  SSLIC is a Florida domiciled insurance
company with total assets of approximately $82.1 million.  SSLIC is
currently licensed to transact business in 14 states.  SSLIC's total
revenues for the year ended December 31, 1997 were $11,695,756. 
SSLIC had a net income of $195,000 for fiscal 1997.

As consideration for the purchase of the shares of Consolidare, the
Company will pay to the holders of Consolidare common stock an
aggregate of $11,356,400 plus an amount equal to the current assets
of Consolidare as of the closing date.  For purposes of the purchase
consideration, current assets of Consolidare are defined as cash and
cash equivalents (with interest earned through the closing date) and
accrued commission due to Insuradyne from SSLIC.  To pay the
purchase consideration, the Company intends to obtain approximately
$6,500,000 from bank financing, with the balance of approximately
$4,856,400 to be obtained from funds currently held by the Company. 
In addition to the purchase consideration, the Company is required
to cause SSLIC to pay, on the closing date, $1,050,000 to George
Pihakis, who is currently President and Chief Executive Officer of
SSLIC, as a lump sum settlement of the executive compensation
agreement between SSLIC and Mr. Pihakis.

The closing of the Agreement is contingent upon regulatory
approvals, including the approval of the Florida Department of
Insurance and the Utah Insurance Department, compliance or waiver of
compliance under the Hart-Scott-Hodino Antitrust Improvements Act of
1976, approval of the Agreement by the affirmative vote of a
majority of the Consolidare shareholders, with no Consolidare
shareholders exercising their rights as dissenting shareholders
under Section 607.1320 of the Florida statutes, as well as the
satisfactory performance of certain covenants and the accuracy of
the parties' respective representations and warranties at closing. 
Following the closing of the Agreement, it is the intention of the
Company to merge a newly formed wholly-owned subsidiary of Security
National Life Insurance Company into Consolidare, with the result
that Security National Life Insurance Company will then own 57.4% of
the outstanding shares of common stock of SSLIC.  The Company
further intends to continue to operate SSLIC as a Florida domiciled
insurance company.

Year 2000 Issues
----------------
The Company is aware of the issues associated with the programming
code in existing computer systems as the millennium ("Year 2000")
approaches. The Year 2000 problem is pervasive and complex as
virtually every computer operation will be affected in some way by
the rollover of the two digit year value to 00. The issue is whether
computer systems will properly recognize data sensitive information
when the year changes to 2000.  Systems that do not properly
recognize such information could generate erroneous data or cause a
system to fail.

The Company's systems, which are presently in use, have been
purchased from third party vendors.  The Company is in the process of
converting to the latest versions for these systems which are Year
2000 compliant ("Version 2000").  The Company plans to have the
Version 2000 installed and in use for its life insurance subsidiary
in the third quarter of 1998 and the Version 2000 installed and in
use for its cemetery and mortuary subsidiaries in the first quarter
of 1999.  The mortgage subsidiary is currently using a Version 2000
system.  The total cost for the Version 2000 systems is approximately
$50,000, of which $40,000 has been spent as of March 31, 1998.

<PAGE>

Once installed the Company believes that the Year 2000 problem will
not pose significiant operational problems for the Company.  However,
if such conversions are not completed timely, the Year 2000 problem
may have a material impact on the operations of the Company.  Also,
the Company is in the process of confirming with its major vendors
and suppliers to determine their compliance to the Year 2000.
<PAGE>
<TABLE>
<CAPTION>

                              Part II  Other Information:

<S>              <C>
Item 1.          Legal Proceedings

                 NONE

Item 2.          Changes in Securities

                 NONE

Item 3.          Defaults Upon Senior Securities

                 NONE

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

                 NONE

Item 5.          Other Information

                 NONE

Item 6.          Exhibits and Reports on Form 8-K

   (a)           Exhibits

     3.   A.     Articles of Restatement of Articles of Incorporation (8)
          B.     Bylaws (1)

     4.   A.     Specimen Class A Stock Certificate (1)
          B.     Specimen Class C Stock Certificate (1)
          C.     Specimen Preferred Stock Certificate and Certificate of
                 Designation of Preferred Stock (1)
  10.     A.     Restated and Amended Employee Stock Ownership Plan and
                 Trust Agreement (1)
          B.     Deferred Compensation Agreement with George R. Quist (2)
          C.     1993 Stock Option Plan (3)
          D.     Promissory Note with Key Bank of Utah (4)
          E.     Loan and Security Agreement with Key Bank of Utah (4)
          F.     General Pledge Agreement with Key Bank of Utah (4)
          G.     Deferred Compensation Agreement with William C. Sargent (9)
          H.     Note Secured by Purchase Price Deed of Trust and Assignment
                 of Rents with the Carter Family Trust and the Leonard M.
                 Smith Family Trust (5)
          I.     Deed of Trust and Assignment of Rents with the Carter
                 Family Trust and the Leonard M. Smith Family Trust (5)
          J.     Promissory Note with Page and Patricia Greer (6)
          K.     Pledge Agreement with Page and Patricia Greer (6)
          L.     Stock Purchase Agreement with Civil Service Life Insurance
                 Company and Civil Service Employees Insurance Company (7)
          M.     Promissory Note with Civil Service Employees Insurance
                 Company (7)
          N.     Articles of Merger of Civil Service Employees Life
                 Insurance Company into Capital Investors Life Insurance
                 Company (7)
          O.     Agreement and Plan of Merger of Civil Service Employees
                 Life Insurance Company into Capital Investors Life
                 Insurance Company (7)
          P.     Employment Agreement with Scott M. Quist. (9)
                                          

     (1)         Incorporated by reference from Registration Statement on
                 Form S-1, as filed on June 29, 1987.
     (2)         Incorporated by reference from Annual Report on Form 10-K,
                 as filed on March 31, 1989.
     (3)         Incorporated by reference from Annual Report on Form 10-K,
                 as filed on March 31, 1994.
     (4)         Incorporated by reference from Report on Form 8-K, as filed
                 on February 24, 1995.
     (5)         Incorporated by reference from Annual Report on Form 10K,
                 as filed on March 31, 1995.
     (6)         Incorporated by reference from Report on Form 8-K, as filed
                 on May 1, 1995.
     (7)         Incorporated by reference from Report on Form 8-K, as filed
                 on January 16, 1996.
     (8)         Incorporated by reference from Annual Report on Form 10-K,
                 as filed on March 31, 1997.
     (9)         Incorporated by reference from Annual Report on Form 10-K,
                 as filed on March 31, 1998.

     27.         Financial Data Schedule
</TABLE>

(b) Reports on Form 8-K

          The Company filed a report on Form 8-K with the Securities and
          Exchange Commission on May 12, 1998.  The report supplied
          information under Item 2, thereof, captioned "Acquisition or
          Disposition of Assets", relating to the acquisition of
          Consolidare Enterprises, Inc.<PAGE>
     SIGNATURES

Pursuant to the requirements of the Securities and 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: May 15, 1998                    By:        George R. Quist,
                                                  Chairman of the Board,
                                                  President and Chief
                                                  Executive Officer
                                                  (Principal Executive
                                                   Officer)


DATED: May 15, 1998                    By:        Scott M. Quist
                                                  First Vice President,
                                                  General Counsel and
                                                  Treasurer (Principal
                                                  Financial and Accounting
                                                  Officer)