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Hi there and welcome
If you are going with Office 354 then you will want to look at using onedrive which is Microsofts version of online file storage.
It is secured by your office user account that you will be getting when you setup with Office 365, and you will get 1TB of space with each user as part of office, so works out pretty cheap.
you can see this here
But as your going with office 365 then this makes the most sense as its the most integrated.
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You would share a link to them, and they would via the document but it would not be encrypted.
But the file is not sent, you send them a link and its with that link they can view the file.
The options for this is limited to this or you would download the file and email it to them.
Any files you store in the cloud has an inherent risk, but this is down to the strength of the passwords of your accounts.