Ipad2 & word templates.

You need a word processing program.

I have documents to go which I like a lot. But there's also Apple's Pages and other office programs out there, some free, some pay (you're probably going to be happiest with a pay version, if for no other reason than to get rid of ads)

I'd read some reviews and find something that looks good to you. However you may also want to bear in mind that all apps are skinned down versions of programs. They often have limited functionality. I don't recall seein an option to insert anything on my Docs to Go. Cut and paste, yes, but I am wondering if what you're wanting is possible on an iPad app.

I'd search through the app store and contact the developers and see if they can give you info on the app's full abilities.