This isn't as flippant a suggestion as it sounds. The only way to stop your signature from potentially being misused is to not include your signature in the document. (This approach doesn't care whether you are using a Word document or a PDF document-both are just as easy to grab.) It is rather trivial to grab a screen shot of the signature and then crop it down in a different graphics editing program. The reason that you can't get absolute protection, of course, is that if you can see the image it can be grabbed, in some way or another, and saved electronically. (To start, display the Review tab of the ribbon and click the Restrict Editing tool.) You could also save your document out in PDF format, which would stop the individual signature image from being selected. For instance, you could protect the document by restricting editing. There are, however, several things you can do to make it more difficult to use. The short answer is that there is no way to protect your signature (or any other graphics file) that you place in your document. He worries, however, that it can be deleted or misused, so he wonders if there is a way to paste it into the document (it's a JPG file) and have it secured in some way. Len often uses Word to send letters and he usually pastes a scanned copy of his signature into the document.
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