LIFELINE SYSTEMS INC
SC 13G/A, 1999-02-24
RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT
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<PAGE>
 
                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                 SCHEDULE 13G

                 Under the Securities and Exchange Act of 1934

                              (Amendment No. 8)*

                            LIFELINE SYSTEMS, INC.
- --------------------------------------------------------------------------------
                               (Name of Issuer)


                         Common Stock, $.02 par value
- --------------------------------------------------------------------------------
                          (Title of Class Securities)


                                  532192 10 1
                ----------------------------------------------
                                (CUSIP Number)


                               December 31, 1998
- --------------------------------------------------------------------------------
            (Date of Event Which Requires Filing of this Statement)


Check the appropriate box to designate the rule pursuant to which this schedule
is filed:

     [ ]  Rule 13d-1(b)
     [X]  Rule 13d-1(c)
     [ ]  Rule 13d-1(d)

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the 
Notes).
<PAGE>
 
                                      13G
- ------------------------                                ------------------------
CUSIP NO. 532192 10 1                                          PAGE 2 OF 6 PAGES
          -----------  
- ------------------------                                ------------------------

- --------------------------------------------------------------------------------
     NAME OF REPORTING PERSON
1    S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
                               L. Dennis Shapiro
- --------------------------------------------------------------------------------
     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2                                                                       (a)  [ ]
                                                                        (b)  [X]
- --------------------------------------------------------------------------------
     SEC USE ONLY
3

- --------------------------------------------------------------------------------
     CITIZENSHIP OR PLACE OF ORGANIZATION
4
                                 United States
- --------------------------------------------------------------------------------
      NUMBER OF               SOLE VOTING POWER
                         5
        SHARES               578,099 (beneficial interest disclaimed in 4,124)
                    ------------------------------------------------------------
     BENEFICIALLY             SHARED VOTING POWER
                         6
       OWNED BY              130,734 (beneficial interest disclaimed in 130,734)
                    ------------------------------------------------------------
                    
         EACH                 SOLE DISPOSITIVE POWER
                         7
      REPORTING              578,099 (beneficial interest disclaimed in 4,124)
                    ------------------------------------------------------------
                    
        PERSON                SHARED DISPOSITIVE POWER
                         8
         WITH                130,734 (beneficial interest disclaimed in 130,734)
                    ------------------------------------------------------------
                         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
                         PERSON



9                                708,833
- --------------------------------------------------------------------------------

     CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
     CERTAIN SHARES
10
                                      [X]
- --------------------------------------------------------------------------------


     PERCENTAGE OF CLASS REPRESENTED BY AMOUNT IN ROW 9
11
                                     12.1%
- --------------------------------------------------------------------------------

     TYPE OF REPORTING PERSON*
12                                    
                                      IN
- --------------------------------------------------------------------------------
<PAGE>
 
                        AMENDMENT NO. 7 TO SCHEDULE 13G


Item 1(a).     Name of Issuer:

               Lifeline Systems, Inc.


Item 1(b).     Address of Issuer's Principal Executive Offices:

               111 Lawrence Street
               Framingham, MA 01702-8156


Item 2(a).     Name of Person Filing:

               L. Dennis Shapiro


Item 2(b).     Address of Residence:

               24 Essex Road
               Chestnut Hill, MA 02467


Item 2(c).     Citizenship:

               United States


Item 2(d).     Title of Class of Securities:

               Common Stock, Par Value $.02


Item 2(e).     Cusip Number:

               532192 10 1


Item 3.        If this statement is filed pursuant to Rule 13d-1(c), check
               this box.     [x]
<PAGE>
 
Item 4.   Ownership:

          a.   Amount beneficially owned:  708,833 shares, except as this amount
               may be limited by the explanations contained in paragraphs 2
               through 6 below:

               1.   573,975 shares are owned directly by Mr. Shapiro (includes
                    24,500 shares which Mr. Shapiro had the right to acquire
                    within sixty days of December 31, 1998).

               2.   4,124 shares are in the name of Mr. Shapiro as custodian for
                    his children.  Mr. Shapiro has sole voting and dispositive
                    power over such shares, but he disclaims any beneficial
                    interest.


               3.   17,062 shares are in the name of Mr. Shapiro's children. Mr.
                    Shapiro has shared voting and shared dispositive power over
                    such shares, but he disclaims any beneficial interest.


               4.   12,360 shares are in the name of Mr. Shapiro's wife, as
                    custodian for their children.  Mr. Shapiro has shared voting
                    and shared dispositive power over such shares, but he
                    disclaims any beneficial interest.


               5.   66,000 shares are in the name of Mr. Shapiro's wife as a co-
                    trustee of three trusts.  Mr. Shapiro has shared voting and
                    shared dispositive power over such shares, but he disclaims
                    any beneficial interest.


               6.   35,312 shares are in the name of Mr. Shapiro's wife.  Mr.
                    Shapiro has shared voting and shared dispositive power over
                    such shares, but he disclaims any beneficial interest.


          b. Percent of class:  12.1%


          c. Number of shares as to which such person has:


               (i)  sole power to vote or direct the vote:  578,099 shares;
<PAGE>
 
              (ii)  shared power to vote or direct the vote:  130,734 shares;

             (iii)  sole power to dispose of or to direct the disposition of:
                    578,099 shares; and

              (iv)  shared power to dispose of or to direct the disposition of:
                    130,734 shares.


Item 5.   Ownership of Five Percent or Less of a Class:

          This Item is inapplicable.


Item 6.   Ownership of More than Five Percent on Behalf of Another Person:

          Mr. Shapiro holds 4,124 shares as custodian for his children.  Mr.
          Shapiro's wife holds 12,360 shares for their children.  These children
          have the right to receive any dividends which may be declared and any
          proceeds from the sale of these securities.

          Mr. Shapiro's wife holds 66,000 shares as a co-trustee of three
          trusts. The trusts, in which Mr. Shapiro holds no interest, have the
          right to receive any dividends which may be declared and any proceeds
          from the sale of these securities.

          Mr. Shapiro's children own 17,062 shares and have the right to receive
          any dividends which may be declared and any proceeds from the sale of
          these securities.

          Mr. Shapiro's wife owns 35,312 shares and has the right to receive any
          dividends which may be declared and any proceeds from the sale of
          these securities.


Item 7.   Identification and Classification of the Subsidiary Which Acquired the
          Security Being Reported on by the Parent Holding Company:

          This Item is inapplicable.


Item 8.   Identification and Classification of Members of the Group:

          This Item is inapplicable.
<PAGE>
 
Item 9.   Notice of Dissolution of Group:

          This Item is inapplicable.


Item 10.  Certification:

          By signing below I certify that, to the best of my knowledge and
          belief, the securities referred to above were not acquired and are not
          held for the purpose of or with the effect of changing or influencing
          the control of the issuer of the securities and were not acquired and
          are not held in connection with or as a participant in any transaction
          having that purpose or effect.


     After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

                           /s/ L. Dennis Shapiro
                        ---------------------------------
                               L. Dennis Shapiro
                             Chairman of the Board
Dated:  February 24, 1999


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