The study determined the morbidity cost and farmers’ willingness to pay for health insurance in Jigwa State of Nigeria using a cross-sectional data collected from 284 farmers viz. a multi-stage sampling technique. Using an easy-route cost approach, a well-structured questionnaire coupled with interview schedule was used for data elicitation and the data collected were analyzed using both descriptive and inferential statistics. Empirically, majority of the farmers deployed accumulation strategy for livelihood sustenance vis-à-vis enterprise diversification, a catalyst that increased their stocks and consumption outcomes, thus smoothen their income and consumption. However, financial and at worst physical livelihood capitals were the challenges that affected livelihood assets of the farmers in the study area. Furthermore, malaria is the major livelihood health morbidity; consequently, for a healthy livelihood, marginally above half of the sampled population conceded to the idea of social health insurance scheme. However, this intent was largely driven by the relegated or almost neglected social learning aspect of extension service delivery. Thus, as a measure to reduce cost of public capital expenditure on livelihood health care in the study area, the study advises policymakers to extend its health scheme beyond the fold of formal organization by accommodating the farming community, thus enhancing farm family livelihood in particular, and growth and development of the economy in general. Nevertheless, enhancement of institutional factor vis-à-vis social extension, financial and infrastructural facilities are recommended.