Covenant and Dispensational Theology

A Guide to Theological Perspectives

Amy Kreger
Generally speaking, there are two major theological approaches in biblical interpretation within Christian churches. These approaches are not simply doctrinal ideas or practices, but the basic framework in which all other scriptural ideas are interpreted. Nearly every branch and denomination of Christendom subscribes to one of these two belief systems.

The first branch of theology is known as Reformed, or, Covenant Theology. Developing in the seventeenth century, Covenant theology views God's dealings with man based on a covenantal relationship. There is one overall Covenant, the covenant of Redemption, in which it is God's plan that mankind be redeemed from sin in order to enjoy eternal salvation. This Covenant of Redemption connects God and man throughout all of human history. Moreover, within the Covenant of Redemption there is a covenant between God and man which was in existence from the time of creation until the death of Jesus Christ; the Covenant of Works. In this Covenant, salvation is believed to have been obtained by righteous works and obedience to the law. With the death and resurrection of Christ, however, the Covenant of Grace was instituted, which will continue until the end of human history. Under the Covenant of Grace, salvation is only obtained through the grace of God, by a person placing his faith in Jesus Christ's vicarious death for sinners on the cross.

In practical terms, the identifying factor of this belief system is that Old Testament Israel is equated with the New Testament Church. In general, many of the promises given to Israel in the Old Testament are applied to the Christian in the New Testament, as are the rights and responsibilities of the Israelite applied to the Christian. Circumcision in the Old Testament becomes the equivalent of baptism in the New Testament and salvation is seen as a process rather than a decision. Churches espousing this theology baptize babies because it is considered the same rite as circumcision, which was performed on the eighth day after birth in the old Testament. Covenant Theology emphasizes the unity of God's people and the Bible through all of time. It is also closely aligned with Calvinism.

The second branch of theology is known as Dispensational Theology. This system developed more recently in the nineteenth century and was popularized by C. I. Scofield, author of the Scofield Study Bible. This system recognizes different modes of God's dealing with mankind. God, in this system, deals with people via different avenues at different times. Some dispensationalists believe that the mode of salvation has always been the same, regardless of the dispensation, and that is salvation by faith alone, either looking forward or backward to the work of Christ. Other dispensationalists believe salvation was obtained by different means during different dispensations. Churches that hold to this theological perspective baptize after a person has made a profession of conversion. There is a dichotomy of Israel and the church in this system. In general, the dispensations are as follows: Innocence (Adam and Eve before the Fall), Conscience (from Adam to Noah) Government (Noah to Abraham), Patriarchal Rule/Promise (Abraham to Moses), Law (Moses to Christ), Grace (New Testament Age) and Kingdom (Future rule under Christ).

Though a third type of theology, Christocentric Theology, exists, it is not yet well defined or widely held.

A basic understanding of these systems of theology will give you insight into the type of church you attend and that church's view on the dealings of God with mankind throughout history.

Published by Amy Kreger

Amy is a stay at home mom who resides in northern Minnesota. She has been married for 9 years and has 4 young children.  View profile

  • Covenant Theology holds that God deals with Man based on 3 Covenants: Redemption, Works and Grace.
  • Covenant Theology sees a continuity between Old Testament Israel and the New Testament Church.
  • Dispensational Theology emphasizes a dichotomy between the Church and Israel.
Dispensationalists generally hold to seven dispensations. However, Hyper-Dispensationalists believe there are many more.

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