If your Microsoft Word(2007) document has sensitive data in it ,always make
sure that you Encrypt and Password protect document for secure.This is helpful
when you have document in shared location or folder.

To encrypt (128-bit encryption) your document, click on the Microsoft Office
Button in the upper left hand corner, select Prepare from the left-hand menu
and then choose Encrypt Document.

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In the Encrypt Document dialog window type in your password for this document.

Again you need to enter in your password for verification and click OK.

Encrypt.JPG

Encrypt.PNG

By default Windows Office Word 2007 will save your document with 128-bit
advanced encryption. Now ,when anyone goes to open the document it will
automatically ask for the password.

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Done,this enables the password protection for your word 2007 Document.
It is not possible to open a word document with out a password ,but it can
be (Document) deleted.