That’s precisely how it works, and why a DAW is more flexible than a console.
You might use send effects when you want to share a single instance of a reverb or delay (for example) between multiple channels. It saves cpu and you can do some neat automation tricks on the send levels to vary the amount of effect or bring it in and out without an obvious switching off/on.
An insert is ideal when you need the effected signal to completely replace the original instead of add to it and do not want to share the same instance of the plug with another channel.
Of course if a plugin reverb or delay has a mix control as most do you can use it in an insert and still add to the signal rather than replacing.
Analogue consoles (maybe not low end stuff) have both sends and inserts on each channel too.
As for inserts, you will notice a difference in operation of the effect depending on whether it is pre or post EQ.
Also as a rule dynamic effects such as noise gates, expanders, compressors and limiters always on an insert.