This is configurable. I use it in my android fork that I use for creative writing, `write-xl` (in case you're interested, here: https://github.com/adamharrison/write-xl ; not really ready for public consumption). You can set the word wrapping configuration via your user plugin by doing:

config.plugins.linewrapping.mode = "word"

The full list of options is here: https://github.com/lite-xl/lite-xl/blob/master/data/plugins/...