Using a Microsoft account and linking it with your Microsoft 365 or Office for home product connects you to various Microsoft products and services, and is needed anytime you have to install or reinstall the apps.
Note: Linking a Microsoft account with Office only applies to Microsoft 365 Family or Personal, or non-subscription versions such as Office Home and Student, Office Home and Business, Office Professional and some versions of Office Professional Plus.
A few things to keep in mind
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A Microsoft account is usually required to install and activate Office and Microsoft 365 Family or Personal.
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You might already have a Microsoft account if you use a service like Outlook.com, OneDrive, Xbox, or Skype; or if you purchased Microsoft 365 or Office from the online Microsoft Store.
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If you don't have a Microsoft account yet, you’ll be asked to create one the first time you install or activate your copy of Microsoft 365 or Office.
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When you link your Microsoft account to Microsoft 365 or Office, it means anytime you want to install or reinstall it you won't need to re-enter your product key, or hang on to an installation disc or thumb drive.
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If you use Microsoft 365, you can add your credit card information to your Microsoft account and turn on recurring billing so it's always available.
