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In this video tutorial by the Center for Career and Life Planning, viewers learn how to create a digital signature in Word, specifically using Word 2016, although it can also be adapted for Word 2010. The tutorial suggests using a cover letter as a context for adding the digital signature. Before starting the process on the computer, the presenter advises viewers to prepare by using a blank piece of white paper and a black marker, recommending a thicker marker for ease of use. The video outlines the necessary steps to create and implement the digital signature effectively.