I know using overtype mode is disabled by default in word 2007. Insert key does nothing by default too.
For 2007: Click on that office icon thing in the top left. Go to 'word options'. It's down near the bottom of that menu. Go to Advanced. Check off 'Use insert key to control overtype mode'.
TADA!
There's probably similar instructions for other versions of word. If you don't have a version with the new ribbon interface, try Tools -> Options instead.
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