EXHIBIT 12 (B)

                CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
                       AS ADOPTED PURSUANT TO SECTION 906
                        OF THE SARBANES-OXLEY ACT OF 2002

I, Jimmy D. Gambill, Chief Executive  Officer of the TEMPLETON INSTITUTIONAL
FUNDS, INC. (the "Registrant"), certify,  pursuant to 18 U.S.C. Section 1350 as
adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002, that, to my
knowledge:

               1. The periodic report on Form N-CSR of the Registrant for the
                  period ended 12/31/05 (the "Form N-CSR") fully complies with
                  the requirements of Section 13(a) or 15(d) of the Securities
                  Exchange Act of 1934; and

               2. The information contained in the Form N-CSR fairly presents,
                  in all material respects, the financial condition and results
                  of operations of the Registrant.

Dated: May 17, 2006

                                    /s/JIMMY D. GAMBILL
                                    ------------------------------------------
                                    Jimmy D. Gambill
                                    Chief Executive Officer - Finance
                                    and Administration


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                CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
                       AS ADOPTED PURSUANT TO SECTION 906
                        OF THE SARBANES-OXLEY ACT OF 2002

I, Galen G. Vetter, Chief Financial Officer of the TEMPLETON INSTITUTIONAL
FUNDS, INC. (the "Registrant"), certify,  pursuant to 18 U.S.C. Section 1350 as
adopted pursuant to Section 906 of the Sarbanes-Oxley  Act of 2002, that, to my
knowledge:

               1. The periodic report on Form N-CSR of the Registrant for the
                  period ended 12/31/05 (the "Form N-CSR") fully complies with
                  the requirements of Section 13(a) or 15(d) of the Securities
                  Exchange Act of 1934; and

               2. The information contained in the Form N-CSR fairly presents,
                  in all material respects, the financial condition and results
                  of operations of the Registrant.

Dated:  May 17, 2006

                                    /s/GALEN G. VETTER
                                    ------------------------------------
                                    Galen G. Vetter
                                    Chief Financial Officer