It's a spiritual thing, being "in Christ". If His Word is in you and you abide in it and live according to it, you are in/with Christ.

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I thought the Word was God? How could it fail to be in me?

Well, do you continue in Christ's word/teachings, i.e., live by them? That is what proves whether you are really His follower and whether His word is in you or not.

I thought "He" was "the life". How could I live otherwise?

Right! He is the Life! Why would anyone want to live any other way?