On Microsoft Word 2011 for Mac OSX, there are 2 options. I chose the latter.
Add overtype option to the toolbar:
1. Go to 'View' > 'Toolbars' > 'Customize Toolbars and Menus...'
2. In the dialog window, select the 'Commands' tab.
3. Choose 'All Commands' from Categories,
4. Drag and drop 'Overtype' to the toolbar, after selecting it from Commands.
Add overtype keyboard shortcut:
1. Go to 'View' > 'Toolbars' > 'Customize Toolbars and Menus...'
2. Click the 'keyboard...' button and customize keyboard dialog window opens.
3. Choose 'All Commands' from Categories,
4. Choose 'Overtype' from Commands,
5. Place your cursor in textbox that reads 'Press new keyboard shortcut'.
NOTE: I found that combination of Command key + (keys from 7 to 9) were not assigned to any command. So, I chose 'Command' + '7'.
6. Don't forget to press the 'Assign' button.
That is all! You may also go to 'Preferences' - 'Edit' - 'Overtype mode'. But I found that option more annoying and less useful.
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