One spouse should be the annuitant and both should be named as primary beneficiaries. The parties to the contract would then be, for example:
Annuitant: Husband
Owner: Husband and Wife
Beneficiary: Husband and Wife
Under this arrangement, if Husband dies first, the accumulated value of the contract would be paid to the remaining beneficiary, Wife. Since the sole beneficiary is the surviving spouse, Wife may continue the contract as the new annuitant and owner. If Wife dies first, the accumulated value of the policy, minus applicable surrender charges and Market Value Adjustment, would be paid to the remaining beneficiary, Husband. Since the sole beneficiary is the surviving spouse, Husband may continue the contract as the new annuitant and owner.