Low accessibility to credit facilities has been devastating the small scale farming business in Nigeria. Therefore, the small scale farmers in Nigeria are encountering difficulties as these farmers cannot directly access credit facilities to boom and develop their farm business activities, and this has led to agricultural business setback in the country. This paper investigated how micro-insurance policy has influenced peace of mind among the small scale farmers in Nigeria. The study used survey research methodology, with the south-western part of Nigeria as the scope of the study. The data for this study was extracted from primary source through well structure designed questionnaires, using correlation and linear regression analysis to analyze the extracted data. And to determine the present and future relationship between examine the present and future relationship between the independent variable (micro-insurance (MI) and the set of dependent variables (health risk (HR); financial protection (FP); vulnerability risk (VR); and Poverty alleviation (PA)). The findings revealed that using micro insurance as an health risks management tool among the small scale farmers in rural areas, and the less privileges will be an efficient platform to alleviate their proneness to the risks of sickness, because it will assist this them to overcome the anxiety of hospital bills payments, and other medical expenses. The study conclude that Micro-insurance can mitigate vulnerability among the small scale farmers in the country by providing low income households, business and farmers with access to post eventuality compensation, thus compensates them for injury, damage and providing coverage for their ill-health, which invariably leads to development among the small scale farmers.