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In this video tutorial, Leon demonstrates how to create a modern professional cover letter template in Word. He begins by setting the page format to A4 size in the Layout tab. Next, he inserts a horizontal bar for contact information by accessing the Insert tab, selecting the rectangular shape from the Shapes dropdown, and adjusting the size to 1cm in height and 21cm in width, which matches the page width. He emphasizes that users should adjust the width according to their chosen page format, such as 21.59cm for letter size. Finally, he centers the bar using the Align options and proceeds to change its color.