What Makes Covenant Theology So Important?

Very few of us lay in bed at night wondering about terms such as covenant theology. I would wager that most Christians don’t know where their theology (their study of God and religious beliefs) lies on the spectrum of theologies. Don’t all who read the Bible and believe in Jesus believe the same thing? The answer to that is no. There are a variety of theologies that divide Christians.

Two particular ones are covenant theology and dispensationalism. As you read this article, you’ll discover where your beliefs fall on the theological spectrum. You may be surprised.

What Is Covenant Theology?

Covenant theology interprets the Bible through the filters of God’s covenants and the unfolding story of redemption. A covenant is an agreement between parties with promises and stipulations. Covenants indicate a relationship and often involve a ceremony and vows. Marriage is an example of a covenant. Michael Lawrence explains in his Christianity.com article that covenants were made in the Near East during biblical times to create long-lasting agreements. So, God related to humanity by making covenants that communicated key things about his nature and plans.

What Are the Important Covenants According to Covenant Theology?

Though five biblical covenants stand out in Scripture, covenant theology forms its doctrine on three over-arching covenants revealed from Genesis to Revelation. These three big-picture covenants are:

1. The covenant of redemption was made before the world’s creation by the Trinity—Father, Son, and Holy Spirit. No scripture speaks specifically of this covenant between the Trinity, but the concept is found throughout the story of God.  

2. The covenant of works (also called the covenant of creation or the Edenic Covenant) was made between God and his first humans. God commanded Adam and Eve not to eat from the tree of knowledge of good and evil, or they would die. This covenant of works continued through the Mosaic Law.

3. The covenant of grace (promised in the Old Testament and finished in the New.)

Most of us think of grace as a New Testament covenant, but writer Chad Brand maintains the covenant of grace is found throughout the Bible. In his article, Perspectives on Israel and the Church: 4 Views, he writes, “The covenant of grace can also be seen in the covenants with Noah, Abraham, Moses, David, and the New Covenant (Jeremiah 31:34). In other words, the covenant of grace is seen throughout the Old and New Testaments.”

Scripture validates this theory. The Apostle John wrote, “From the fullness of his grace we have all received one blessing after another. For the Law was given through Moses; grace and truth came through Jesus” (John 1:16-17). His words “From the fullness of his grace” reveal that the Law was a blessing. Living on the other side of the Cross, we don’t see it that way, but the Law provided a means to God, a better way to live, and demonstrated our need for a Savior. From the beginning of time, God planned to reconcile the world to himself. He is a God of relationship, a God of covenants.

Five Main Covenants of God with Man

If you ask Google how many biblical covenants are in the Bible, you will find answers ranging from five to seven. From my research, most articles I found focused on five particular covenants between humanity and God. These biblical covenants were made with God’s favorites—people who walked with him.

1. The Noahic Covenant: God made a covenant with Noah after he flooded the world but saved Noah and his family. God promised Noah, a righteous man who obeyed God’s instructions, “I establish my covenant with you: Never again will all life be destroyed by the waters of a flood; never again will there be a flood to destroy the earth” (Genesis 9:11). Furthermore, God described the rainbow in the sky as a sign of the covenant he was making (Genesis 9:12-13).

2. The Abrahamic Covenant: God made a covenant with Abram (later renamed Abraham), telling him to go to a new land and that God would make him the father of a great nation. Furthermore, God said as part of the covenant, he would bless the people who bless Abram, and curse those who curse him, and that eventually all the people groups on earth would be blessed through Abram (Genesis 12:1-3). 

3. The Mosaic Covenant: After the Lord freed Israel from slavery and Egypt, he made a covenant with them on Mount Sinai. He told them, “Now if you obey me fully and keep my covenant, then out of all nations you will be my treasured possession. Although the whole earth is mine, you will be for me a kingdom of priests and a holy nation” (Genesis 14:9-6). The Mosaic covenant is further formed in Exodus 20 and Deuteronomy 28. This covenant was one of blessings and curses dependent upon obedience.

4. The Davidic Covenant: God made a specific covenant with David that promised his family and kingdom would be blessed. He told David, “Now I will make your name great, like the names of the greatest men on earth. And I will provide a place for my people Israel and will plant them so that they can have a home of their own and no longer be disturbed... Your house and your kingdom will endure forever before me; your throne will be established forever” (2 Samuel 7:10, 2 Samuel 7:16).

5. The New Covenant: During the Last Supper, Jesus held up the third cup of the Passover meal, the cup of redemption, and he proclaimed, “This is my blood of the [new] covenant, which is poured out for many,” he said to them. “Truly I tell you, I will not drink again from the fruit of the vine until that day when I drink it new in the kingdom of God” (Mark 14:24, addition mine). The new covenant is the covenant of faith and grace. We are saved by grace because Jesus Christ redeemed us by his blood. Those who trust this truth will be saved. 

What Is the History of Covenant Theology?

Covenant theology was renewed in the sixteenth century during the Protestant Reformation. Martin Luther played a central role in this religious revolution against the Catholic church. Luther proclaimed the church had perverted the covenant of grace with its penitential system. The two main foundations for the Reformation included: The authoritative nature of Scripture and justification through faith alone.

According to Encyclopedia Britannica, Luther never intended to leave the Catholic church, but in 1521 he was excommunicated. His desire to bring reform resulted in a major church split. This split ensued the renewal of covenant theology, with Protestant theologians like John Owens, Francis Turretin, and Jonathon Edwards exploring its implications.

In the nineteenth century, covenant theology was challenged by another movement called dispensationalism. Dispensationalism divides the Bible into different periods of God’s order, rules, and favor with humanity. John Nelson Darby is considered the founder of dispensationalism, which is very popular today among American evangelicals, influencing books like the Left Behind series.

What Separates Covenant Theology from Dispensationalism?

What separates covenant theology from dispensationalism is the belief in the constancy of God’s covenants. Dispensationalists believe God’s favor changes with each dispensation. These dispensations can be broken down into seven periods: innocence, conscience, human government, Abrahamic promise, Mosaic Law, grace, and the eternal state. Dispensationalists divide the promises of God concerning Israel and the New Testament Church. 

Covenant theology unites the church with Israel, while dispensationalists believe the church has replaced Israel. The Gospel Coalition explains that covenant theologians “clearly argue that the church does not replace Israel and ethnic Israel will be saved in the future. Both Israel and the church will be one in the millennium and the eternal state.” On the other hand, dispensationalists believe the Old Testament must be read separately from the New and that the Jews of today are Israel, separate from the church.

What Is Covenant Theology’s Argument Against Dispensationalism?

Covenant theologians present a variety of arguments against dispensationalism. The primary one is that dispensationalism promotes a replacement theory that the church has replaced Israel. One scripture used to refute this belief is found in Romans 11. The entire chapter explains the role of Israel concerning the redemption of the Gentiles. It also promises God’s covenant of love for Israel and their salvation. Concerning Israel, Paul says, “And if they do not persist in unbelief, they will be grafted in, for God is able to graft them in again. After all, if you were cut out of an olive tree that is wild by nature, and contrary to nature were grafted into a cultivated olive tree, how much more readily will these, the natural branches, be grafted into their own olive tree!” (Romans 11:23-24).

Covenant theology does not separate the Old Testament from the New. It does not separate Israel from the modern-day church but recognizes how today’s church has been grafted into God’s chosen and cherished people. Finally, covenant theology believes the biblical covenants build upon each other and reveal the nature of a God who desires relationship and redemption for all who will believe.

For more on the differences between covenant theology and dispensationalism, check out the following articles:

What Is Dispensationalism and Who Believes It?

What Is Dispensationalism vs. Covenant Theology?

What Should All Christians Know about Covenant Theology?

Photo Credit: Getty Images/Ballun

Andy Lee is an event speaker, blogger, YouTuber, and award winning author of three books, A Mary Like Me; The Book of Ruth Key-Word Bible Study, and Radiant Influence: How an ordinary girl changed the world. She passionately teaches how to find life in God's Word in order to live abundantly. You can catch her life giving messages weekly on Instagram and YouTube. She also provides monthly Bible reading plans and articles on her website www.wordsbyandylee.com.