What is the difference between the names Jacob and Israel?
Jacob was the natural name meaning deceiver, but after wrestling with God and prevailing, God changed it to Israel, meaning prince with God. The change signifies Jacob's spiritual transformation, his salvation and new birth, so he would no longer be called Jacob the deceiver but Israel the prince with God.
Les teaches that in this account Jacob wrestles with the Lord and refuses to let go until he is blessed. When the Lord asks his name, Jacob answers, 'Jacob.' The Lord then says his name shall no longer be Jacob but Israel, because as a prince he has power with God and with men and has prevailed. Les explains that Jacob hung tough, did not give up, and did not fail. God sees that faith in Jacob and by it transforms him. This is Jacob's true salvation, where he experiences what today is called the new birth. Since he is now a new man in God, in Christ, even back then, God gives him a new name. He is no longer to be called Jacob the deceiver, which was the natural, but Israel the prince with God. Les reminds us not to lose sight of those two names and his rule of thumb: first the natural, then the spiritual, as with Cain the natural and Abel the spiritual, and Isaac the natural.
And he said, Thy name shall be called no more Jacob, but Israel: for as a prince hast thou power with God and with men, and hast prevailed.