Hello Sarvesh - 

If you ask any financial advisor, they'll say that since she doesn't actively contribute to your household income - your family is not 'financially dependent' on her, and hence, she doesn't need a term insurance policy. 

But I'd like to take a different angle on this. 

To get a term insurance policy for your wife who's a housewife - you should calculate the amount of money that you'd be spending additionally in case she passes away. You should look at things like - 

1. Does she take care of your/her elderly parents, and in her absence would you have to appoint a full-time person to fulfil this need? How much will you need to pay them - in the long-term? 

2. Does she pick up most of the weight when it comes to household chores, cooking etc.? Given you'll have to retain your current lifestyle, continue your day job - you'll need to hire people - helpers, cooks etc. for these jobs. How much will that cost your family in the long-run? 

3. Does she tutor the kids at home, and ensure their studies are done on time? Will you need a tutor to replace her? How much will that cost - in both the short term and long term? 

Once you add all such expenses - check if you can manage to pay for them without any disruption to your and your family’s lifestyle. Basically ask yourself: Do you need insurance for this financial risk?

If you need - take a term insurance for the cover amount you just calculated. 

If you don’t - skip it. 

Hope this helps. :-)