What does the name change from Jacob to Israel mean?
The change means Jacob the deceiver becomes Israel the prince with God, marking his true salvation and new birth—a spiritual transformation. Because he prevailed with God and men, the new name signifies no longer natural but spiritual identity, a prince with God.
Les teaches that God asked Jacob his name, and when he answered “Jacob,” God declared his name would be called no more Jacob but Israel, for as a prince he had power with God and with men and had prevailed. Les explains that Jacob hung tough, did not give up, and did not fail God. God saw that faith in Jacob and by it transformed him. Les calls this Jacob’s true salvation, where he experienced what today we call the new birth. Since he was now a new man in God, in Christ, even back there, God gave him a new name. He was no longer to be called Jacob the deceiver, which was the natural, but Israel the prince with God. Les also reminds us of his rule of thumb: first the natural, then the spiritual, as with Cain the natural and Abel the spiritual, then 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.