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What is this insulation that came with my light fixture? Can I discard it?

Keep it! Incandenscent bulbs produce a lot of heat. About 90% of the power output of a bulb is heat, 10% or less is light. The insulation that came with your ceiling fixture must be installed with the fixture. Failure to install it correctly is likely to result in fire!

Also on the topic of light fixtures, always check the maximum watts for bulbs in a fixture. While 60 watt maximum is common, so is 40 watt maximum. Putting higher watt bulbs in a fixture will subject it and the wires, electrical outlet box and ceiling or wall surface it is mounted on to excessive heat. Fire could result.

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