Do you want to edit it too or just view it. If just for viewing, saving as pdf would be easiest.
If you wish to read through the document, as SteveMartino states, insert a PDF version of the file into a container and set its properties in the Inspector to interactive. This will display the content, rather than an icon for the file type.
If you need to edit the file or open it in a word processor, you can insert it to a container (not interactive type) and as a referenced file, i.e. don't store the file in the container, but check the box on the insertion dialog to store a reference to the file. This will allow one to double click the file icon in the container and it will (should) open in the default application for that file type. This method is used to allow users to double-click Excel files and have them open in an Excel-compatible application.
Further, if you need both scenarios covered, you could have two containers; one small one for the Word file inserted as a reference (user double-clicks file icon to open in the default app for that file type), and one larger one in which the PDF is inserted for reading in place. It just depends on your layout design and needs.
Edit to add:
If you want to ensure that the file is uploaded as you wish (e.g. as a referenced location, rather than storing the file in the FM solution), you can provide a button that allows the user to insert the file into each contain with the parameters as you wish for the designed outcome. Then teach users to use this scripted process rather than drag-and-drop or copy/paste (if that feature is available to them).
I haven't tested this extensively beyond relatively short documents, but reading a word document from FMP is simple using a microservice (an external REST call). Then, you could place the word doc text in a regular text field. Not sure if this approach works for you, but it's super simple to read word docs programmatically.