Click on the the template. At the bottom right of the dialogue you'll see two options: 'Document' and 'Template'. If you want to use the letterhead to send as a document or letter, choose 'Document.' If you want to edit the template, choose 'Template.' When you choose 'Document,' it gets saved as an MS Word document.
Moreover, you can also use Word templates for letterheads, invoices and even for monthly business reports. This is because it is integrated with other Microsoft Office programs such as excel. This way, you can import graphs and other objects necessary for completing a well formatted report. There really is a long list of uses for Microsoft Word. You will certainly find it useful whether you are a student, a professor, a businessman, a home maker or whoever you are from whatever industry.