Your Microsoft account will be deactivated for a year, then deleted. Within this period you could reactivate it.
For closing your complete Microsoft account, there is a different link, see the MSN entry on this site: https://accountkiller.com/en/delete-microsoft-account
Also see: http://windowslivehelp.com/solution.aspx?solutionid=baf3b47e-4618-49e1-ae2c-91e158a4cc76
URLS:
http://www.live.com
http://mail.live.com/mail/CloseAccountConfirmation.aspx
Please note that AccountKiller.com is not associated with the business listed on this page. AccountKiller provides easy-to-understand instructions and guides on how to cancel charges and relationships from the list of businesses on our site, we have no affiliation with these businesses.