Lesson for November 19, 2025
Lesson 6
Covenant Theology
Covenant Theology is the system favored by Reformed or Calvinistic theologians. Covenant Theology is in opposition to Dispensational Theology. Dispensationalism is correct scriptural interpretation of the Scriptures. Without a clear understanding of dispensations, a person cannot properly interpret the Bible. This is where Covenant Theology errs in its teaching.
Covenant Theology is built on human works for receiving anything from God.
According to Covenant Theology, a covenant was made among the Godhead to elect and redeem a select group of people to be saved and have eternal life.
The Covenant theologians teach that faith is a condition of what they call “the covenant of grace.” However, as Calvinists they falsely teach a person must remain faithful to “the end,” as a condition of maintaining God’s grace (perseverance).
Covenant Theology takes the position that the Church has either replaced or superseded Israel. Accordingly, they believe that the promises made to Israel are now given to the Church, not to the nation of Israel as it exists today. They therefore do not support the idea that the land that Israel now claims as its own is part of a covenant between them and God.
The Bible clearly teaches that Dispensationalism is the correct way to interpret the Scriptures. Covenant Theology rejects the doctrine of dispensations and falsely assigns to the Church the covenants clearly made to Israel. If they are Calvinists, they believe that a person must persevere in their faith in order to know if they are members of those who God chose for salvation, which is teaching works for salvation.
Dispensationalists do not teach the false doctrines of Covenant Theology or Calvinism, generally speaking. So, here is what we believe as dispensationalists. A dispensation is defined as a period of human history expressed in terms of divine viewpoint and divine revelation. It is the administration of God’s purpose for the human race so that a person can come to know Jesus Christ as Savior by an act of their own free will. (Ephesians 2:8-9) The Word of God is the source for looking at history from God’s viewpoint. Therefore, “dispensation” is a theological term to help us understand the various ways God has dealt and will deal with mankind. (Ephesians 1:10, 3:2; Colossians 1:25)
God’s essence and character never change, however, the way in which He deals with mankind does change. The various changes in administration prove to Satan that God is fair and just in condemning him to the Lake of Fire. Regardless of God’s dealing with mankind, God’s grace and perfect justice are proven over and over again. Therefore, for us as believers and serious students of the Word of God, it is essential that we understand dispensations in order to accurately interpret the Word of God. Failure to do so results in misunderstanding and creates apparent contradictions. Salvation is the same in every dispensation – faith alone in Jesus Christ alone, as He was revealed in each period of history. For example, in the Old Testament, Jesus was revealed as Jehovah.
God’s plan is not the same for every dispensation. In fact, the plan is very different in each dispensation. Old Testament believers were under the ritual plan of God, written in the Law of Moses. In the dispensation of Israel, sacrifices were used by God to illustrate the doctrine of salvation and the Rebound. In the Age of the Gentiles, the father was the priest and represented his family and servants before God. In the dispensation of Israel, the tribe of Levi were the priests of Israel. In the Church Age, all believers are priests and represent themselves before God.
In our dispensation, Christ has already fulfilled the Law of Moses, and we now have a new law, the Law of Christ (grace). In the dispensation of the Gentiles and Israel, the Holy Spirit indwelt very few believers and only for a specific task and was taken away when the tasks were completed. In the Church Age, the Trinity indwells all believers permanently. In the dispensation of the Millennium, Jesus Christ will reside on earth and rule the world system, not Satan. In the dispensation of Israel, the Church Age was a total mystery. In the dispensation of the Hypostatic Union, Christ offered the millennial kingdom to Israel, but they rejected it. Therefore, much of what is in the Gospels is not written to believers of this age, though it all has application as does every book of the Bible. In the dispensation of Israel, believers used the Faith-Rest Technique to fulfill God’s plan; we use the filling (power and guidance) of the Holy Spirit and Bible doctrine to fulfill His plan.
In every dispensation, God has a plan for believers and provides the means for fulfilling that plan. However, God’s plan of salvation never changes. Salvation has always been and will always be by faith alone in Jesus Christ alone. Only how to live the spiritual life has changed from one dispensation to the next, not salvation.
The Greek word for dispensation is “oikonomia,” which means the administration of a business or an estate. Another Greek word for dispensation is “aion” and is generally translated “age” and refers to a specific category of human history (ex. Age of Israel or Church Age). (Romans 16:25, Ephesians 3:9 and Colossians 1:26) The third Greek word for dispensation is “kairos,” meaning epoch or era, which is a specific period of time. (I Thessalonians 5:1; Romans 13:11, 8:18, 11:5) “Kairos” is used for the Age of Israel in Ephesians 2:11-12, in Luke 21:24, for the Church Age. The fourth Greek word for dispensation is “chronos,” which means time as a succession of events (chronology of human history). In Romans 16:25, it is used for all dispensations prior to the Church Age and for the Church Age itself in I Peter 1:20.
We call the first two dispensations Theocentric (the Age of the Gentiles and the Age of Israel) since they were before Jesus Christ was revealed in His humanity. The Godhead is the focal point of these dispensations. The second two dispensations are called Christocentric (the Hypostatic Union and the Church Age) since they are after Jesus Christ was revealed in His humanity and He is the focal point of these dispensations. The third two dispensations are called Eschatological (the Tribulation and the Millennium) since they deal with future events occurring after the Rapture, Christ is the focal point of these dispensations.
The first Theocentric dispensation was the dispensation of the Gentiles, from the fall of man to Abraham. There were several great disasters on the earth during this period, such as the Flood and the Tower of Babel. The second Theocentric dispensation was the dispensation of Israel, from Abraham to the birth of Christ. This period sees the creation of the new race, the Jews, which began with Abraham. It includes the history of the Jews from Abraham to Moses, including the Exodus from Egypt, the Mosaic Law, the Abrahamic Covenant, the Palestinian Covenant, and the Davidic Covenant. The New Covenant to Israel will be fulfilled in the Millennium. These covenants are not for the Church!
The first Christocentric dispensation was the Hypostatic Union (deity and humanity coming together in the Person of Jesus), which ran from Christ’s birth in B.C. 4 to the Resurrection and the Ascension of Christ, a period of 33 years. This period is covered in the Four Gospels.
The second Christocentric dispensation is the dispensation of the Church Age which runs from the Day of Pentecost until the Rapture of the Church (a time unknown by all but God). The Church Age is divided into two parts: (1) the pre-Canon of Scripture period, the time of the Book of Acts and temporary spiritual gifts, runs from 30 – 96 A.D. (2) the post-Canon of Scripture period, which runs from 96 A.D. to the Rapture of the Church. This is the period of the epistles of the New Testament and permanent spiritual gifts.
The first Eschatological dispensation is the dispensation of the Tribulation which runs from the Rapture of the Church to the Second Coming of Christ and is technically the end of the Age of Israel. From the Book of Revelation, it is classified as “the time of Satan’s desperation,” lasting seven years. It was prophesied in the Old Testament, as well as by Christ in the Olivet Discourse of Matthew 24-25, in most of Jesus’ parables, and by John in the Book of Revelation.
The second Eschatological dispensation is the Millennium and the reign of Christ on earth which runs from the Second Coming of Christ to the end of human history, lasting 1000 years. It is the time of the fulfillment of the unconditional covenants to Israel, their restoration as a nation in the Promised Land and their client nation status.
The final judgments of history occur after the Millennium: 1) the final judgment of Satan, the fallen angels, and all unbelievers who are all cast into the Lake of Fire, for all eternity. The Eternal State includes: (1) all believers in resurrection bodies forever (2) the destruction of the present universe and (3) the creation of a new universe consisting of new heavens and a new earth.
Dispensational Theology is not only logical, but also scriptural. Covenant Theology is not only illogical, but also unscriptural.