Yes, it will help heat the house.
We have a wood stove in the basement, in which the half that the wood stove is in has very well insulated walls, none between the floors. Heats that side of basement too well at times. I have an office there, and it gets too hot. Other half of basement, the walls are not insulated well, and the wall between the halves is insulated (originally a garage). Heat does not travel between the two areas well. Heat does get upstairs, and does help keep the gas bill down, but I am not happy with heat distribution. 80* in basement room with stove, 72* in basement room opposite stove, and 72* upstairs (to me it is hot downstairs and too cool upstairs). Wood stove was installed originally for emergency use, and with high fuel prices we got more serious about burning wood, and we did not plan the spaces for good air movement.
There is no way we could afford to heat our basement well enough in the coldest of winter to enjoy it down here without the wood stove. When my office was upstairs, and we didn't spend much time in the basement, I could run the stove room to 80* or higher and was more comfortable upstairs, but we did burn a lot of wood. I don't mind the gas furnace kicking on in the morning as we get up, and the heat pump running some during the shoulder season. We found out even when gas was cheap that if we could run our wood stove at least the 3-5 coldest weeks of the winter we saved very significantly on our gas bill.
If you want to heat the whole house evenly, consider a wood furnace or boiler, or possibly a high efficient fireplace with ducting options. If you are just interested in supplementing your current heating system, and will be in the basement a significant portion of time the stove is burning, it should work well for you. If you don't mind cutting the wood and you aren't in the basement much, get a big stove, fill it twice a day, you can run it pretty hot down there, and it will be comfortable upstairs, but you will run through a lot of wood.
Hope this helps.
Edit: In re-reading your title about an insulated basement, is your ceiling insulated also? Reason I asked, in our (former) garage in the basement the ceiling was insulated, and you could stand upstairs in the livingroom and tell exactly where the wall that divided them was with your feet. If there is insulation in the floor/ceiling, you may have problems getting the heat upstairs.