The short answer is, you are correct. Microsoft has intentionally disabled that functionality in Word 2013. In Excel 2013 the INSERT key still overtypes as you would expect.
The long answer is, you can easily change it! Click FILE > OPTIONS > ADVANCED and near the top you will see USE THE INSERT KEY TO CONTROL OVERTYPE MODE; put a check mark beside that. The USE OVERTYPE MODE check box is like forcing the INSERT key on all the time. I would hate this, but someone else no doubt cannot live without it 
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