Your computer's processor normally runs much faster than your hard drive. So it spends a lot of its time waiting for the hard drive to sent it the information it needs for processing.
A cache is a small amount of memory where the processor can have information pre-loaded. It assumes that if you are running a program or reading a file, that you are going to continue on to the next instruction in the program or the next line of the file. So while the processor is working on the current information, it can have the hard drive load the next set of information in the cache. That way it is immediately available for the processor to use when it finishes the current set of information. This makes the computer run faster.
A page file is similar to that. Only it has to do with the computer's memory rather than its processor. Every computer has a limited amount of RAM memory. If that memory becomes full (because you are running several programs at once or have opened a huge file), the memory has to store some of the information somewhere else temporarily. So it creates a file on the hard drive and puts information it is not using the a second into that file and frees up some of the RAM memory. When that information is needed, it will "swap out" something else and reload the needed information. Thus the name "swap file" is often used for a page file.
You have probably seen this happen many times. You will be reading a document and you go to scroll down, and everything freezes for a couple of seconds before the document finally scrolls. Since you were not using the new section of the document, Windows had swapped it out to the swap file. That moment of pause was it saving something else and then reloading the new section of document for you. That was the page file in action for you.
Benefits? Faster computer (because of the cache) and able to use more programs at once (page file)
Disadvantages? Uses some of your hard drive space for the swap file.
Also accessing a swap file is much slower than keeping everything in memory. So if you limit the page file, the computer will run faster (everything will be in RAM) but be unable to run more than a couple programs at the same time. You would have to decide if that is an advantage or a disadvantage.