There are many advantages to insulating your heaters. Thermal insulation allows for efficiency in your operations as you use less energy to heat your liquid. It is a relatively inexpensive way to extend the life of your heaters as less energy is dispensed to achieve the same temperature. Insulation should also be used in tanks for the same reason. If your application is outdoors and the heater is exposed to colder outdoor climate, this additional step would be most useful. For circulation heaters, adding insulation does not interfere with its operations and, when replacing elements (during maintenance), the insulation can remain on the vessel.