<ARTICLE> 7
<LEGEND>
This schedule contains summary financial information extracted from the
Independence Holding Company Form 10-Q for the nine months ended September 30,
1998 and is qualified in its entirety by reference to such financial statements.
</LEGEND>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               SEP-30-1998
<DEBT-HELD-FOR-SALE>                       235,750,000
<DEBT-CARRYING-VALUE>                                0
<DEBT-MARKET-VALUE>                                  0
<EQUITIES>                                  15,013,000
<MORTGAGE>                                     256,000
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                             323,172,000
<CASH>                                      21,671,000
<RECOVER-REINSURE>                         109,152,000
<DEFERRED-ACQUISITION>                      20,079,000
<TOTAL-ASSETS>                             495,903,000
<POLICY-LOSSES>                            229,644,000
<UNEARNED-PREMIUMS>                         21,905,000
<POLICY-OTHER>                              65,070,000
<POLICY-HOLDER-FUNDS>                        3,553,000
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     7,388,000
<OTHER-SE>                                 101,845,000
<TOTAL-LIABILITY-AND-EQUITY>               495,903,000
<PREMIUMS>                                  60,264,000
<INVESTMENT-INCOME>                         15,538,000
<INVESTMENT-GAINS>                           1,815,000
<OTHER-INCOME>                               5,294,000
<BENEFITS>                                  44,492,000
<UNDERWRITING-AMORTIZATION>                  3,781,000
<UNDERWRITING-OTHER>                                 0
<INCOME-PRETAX>                             10,665,000
<INCOME-TAX>                                 2,539,000
<INCOME-CONTINUING>                          8,126,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 8,126,000
<EPS-PRIMARY>                                     1.09
<EPS-DILUTED>                                     1.08
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0