If you take backup of your Contacts, Photos, and Documents in your Google account, You will never lose them in the case of Phone lost or theft.
If want to format your Phone and you are afraid that your data will be lost, for avoiding that situation always take backup of your data before formatting or Factory Reset your Phone. And another important benefit to backup data in Google account that you can access all your contacts, photos and documents from any device just by login into your Google account.
It is also beneficial if you are planning to upgrade your old smartphone and buying a new phone. In that case, you can easily move data into you new phone just by login into your Google Account from your new device.
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