This paper plans to develop an effective machine learning system integrated with the Internet of Things (IoT) to predict the health insurance amount. IoT in healthcare enables interoperability, machine-to-machine communication, information exchange, and data movement that make healthcare service delivery effective. The model includes three phases (a) Feature Extraction, and (b) Weighted Feature Extraction, and (c) Prediction. The feature extraction process computes two statistical measures: First Order Statistics like mean, median, standard deviation, the maximum value of entire data, and minimum value of entire data, and Second-Order Statistics like Kurtosis, skewness, correlation, and entropy. The prediction process deploys a renowned machine learning algorithm called Neural Network (NN). As the main contribution, the weighted feature vector is developed here, where the weight optimally tuned by Modified Whale Optimization Algorithm (WOA). Also, the contribution relies on NN, where the training algorithm replaced with the same modified WOA for weight update. The modified WOA developed here is termed as Fitness dependent Randomized Whale Optimization Algorithm (FR-WOA). At last, the valuable experimental analysis using three datasets confirms the efficient performance of the suggested model. © 2020, © 2020 Informa UK Limited, trading as Taylor & Francis Group.