/ Dictionary / Index S settlement option: Meaning and Definition of Find definitions for: set'tlement op"tion Pronunciation: [key] — Insurance. Insurance. any of the options, other than immediate payment in a lump sum, by which the policyholder or beneficiary may choose to have the benefits of a policy paid. Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease. settlement settlement worker Related Content Daily Word Quiz: paradox Analogy of the Day: Today’s Analogy Spelling Bee: Today’s Spelling Bee Frequently Misspelled Words Frequently Mispronounced Words Easily Confused Words Writing & Language