Don,
Raw linseed oil will dry but it takes weeks. I use it on all my tool handles, horses, benches and small sheds that are not stained. As far as insects go, they like wood...oiled or not.
Boiled Linseed oil is not boiled today. They add chemicals to it to make it polimerize faster. (Which makes it poision) My dog has a habit of licking the Linseed oil off after I'm done and he's been doing this for years. If I used "boiled" Linseed oil it would likely kill him. Anyway I'm not making furnature but outside wood frames that require protection.
This new client wants his frame stained and I don't think any stain will take if I have used Linseed oil on it. I want to apply one product that will seal and stain. What is the popular sealer/stain product that Timber Framers are using?