When to use heat shrink tubing?

[soggybag]

When and where is the best place to use heat shrink tubing? Seems like it's awkward in some places, for example on 3PDT switch terminals.

[petemoore]

  I'ts possible to pre-tin the wire so that when the solder cools after lug/wire joint is made, the tin runs up the wire a ways, creating a stiff-ended wire like a shoelace...added heat shrink in such cases looks cool unless someone bends the solder-stiffened stranded wire.
  Otherwise not-touching is as insulated as it gets.
  I see well-defined need for it when theres the cable coming out of a chassis or jack.
 
 

[Hides-His-Eyes]

I use it to insulate and strengthen connections. It looks good and has minor benefits.

Only downside is accidentally burning it with your iron.