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I doubt the benefit of this is enough to justify buying insulation. If you've got it laying around fine, do it, after other heat sinks have been insulated.
My guess is that it helps slightly with getting things to temp while plugged in, but, not a lot. You are insulating a piece of metal who's only direct contact to the engine is through a rubber/cork gasket. I don't think the amount of heat transfer is all that great. I would guess it is better to go after the intake/exhaust and maybe the oil pan.
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