12 words is a usual format for a so called "brain wallet". There, the 12 words are not a password, but a representation of the private key. Remember those 12 words and you don't need anything else to access the coins.
That's correct, but there are some extra considerations. Usually, a Bitcoin wallet will generate multiple addresses with different private keys, using the initial key as a seed alongside some extra parameters. The only real-world ramifications of this are that there could be compatibility issues between different wallet software, meaning some extra configuration is needed before being able to regenerate the wallet.
What I described is the complete procedure for regenerating a wallet set, from zero. If you want a real-world equivalent, it's like teleporting all the gold you own to your hand at any time. You might think the procedure is a hassle, but the reality is that you will have a well-secured computer as your primary storage. Being able to recreate a safe store out of thin air is just icing on the cake.