Yes, if your account is still active, your creditor will most likely close it as part of the settlement process. This is standard and ensures the settlement terms are applied to your account.
When an account is closed by the creditor during a settlement, it means that you will no longer be able to make new charges on the account. However, closing the account does not erase the debt; it simply transitions the account into settlement status.
This step helps streamline the settlement process and ensures both you and the creditor can focus on resolving the balance under the agreed-upon terms. Once the debt is settled, the account will typically be reported to credit bureaus as "Settled for less than the full balance, balance owed $0."