should i leave life insurance to kids or my wife

First off, the disposition of your life insurance is a broader estate planning question that should be answered after taking into consideration your family situation, your assets and how they are titled and whether you have a will currently.  I'd suggest that you retain an estate planning attorney to review all of that information so that you can receive informed estate planning advice.  As to your direct question about whether the studen loan companies could pursue your children to recover for unpaid student loans of your wife, my answer is "probably not".  If your wife is the sole obligated party on those loans, then neither you or your children have any duty to pay off those loans.  There is no law that requires you to list your wife as beneficiary on your life insurance policy.  If you or the kids are somehow contractually obligation on the loans, then my answer would be different.