Hi
As far as I know, the main problems with breakdown of insulation is pretty old hat and isn't much of a problem these days.
The main reason for damp ingress whether or not you have insulation, is bridging of the cavity during construction. usually mortar droppings on the wall ties which is why modern full / partial fill "cavity bat" procedures elliminates most of that.
Condensation is another problem and I would have though that if an odd cold patch exists, it has to be better than an entire cold wall.
Your external wall will, unless rendered allow water to penetrate in certain conditions. this will run harmlessly down the inside face of the outer leaf unless encountering a "bridge" where it will cross and cause damp patches on the inner leaf. Cavity insulation can hold this moisture but conversly can also reduce the penetration as well.
I've had the poly bead type for 25 years no probs and though have never installed retrospective insulation, I have built hundreds of extensions using the method above in compliance with any regulations at the time.
As an aside, it's worth checking out if you can get a subsidised installation before they pull the funding.
cheers
bob