Is overtype mode any good in MS Word?

Often times the overtype mode, in which the cursor, when typing, overwrites any text that is present in the current location, is triggered by accidentally hitting the insert key, and it can be quite annoying to people who don't know how to disable it.

As far as I am conceed I don't see any good reason why the overtype mode was ever invented, for I have never been able to figure out when and where it could be better than the ordinary non-overtype mode. It simply looks super clumsy and inconvenient after all.

So here comes my question, why did such a clumsy mode even come into being in the first place? Was there any historical reason?

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