Jacob is told twice that his name will now be Israel. The first time is when he wrestles with an angel on his journey to meet Esau, and the angel tells him that his name will be changed. After he is reconciled with Esau, they go their separate ways. Jacob moves to Shechem and then on to Bethel, where he builds an altar to the Lord. The Lord appears to him there, renews the covenant He first made with Abraham and again tells him that his name will be Israel (Genesis 35). The story goes on to tell of Benjamin's birth and Rachel's death in bearing him, and then of Jacob's return to Isaac and Isaac's death and burial. But at that point the main thread of the story leaves Israel and turns to Joseph, and Israel is hardly mentioned until after Joseph has risen to power in Egypt, has revealed himself to his brothers and tells them to bring all of their father's household down to Egypt. There, before Israel dies, he blesses Joseph's sons, plus all his own sons. After his death he is returned to the land of Canaan for burial in Abraham's tomb. In the story of Jacob and Esau, Jacob represents truth, and Esau good. Jacob's stay in Padan-Aram, and the wealth he acquired there, represent learning the truths of scripture, just as we learn when we read the Ten Commandments or the Sermon on the Mount. The change of name from Jacob to Israel represents the realization that what we learn should not simply be knowledge, but should be the rules of our life, to be followed by action. This action is the good that Esau has represented in the story up to that time, but after the reconciliation between Jacob and Esau, Jacob as Israel now represents the truth and the good, together. It is interesting that even after his name change Jacob is rarely called Israel. Sometimes he is called one and sometimes the other, and sometimes he is called both Jacob and Israel in the same verse (Genesis 46:2, 5, & 8 also Psalm 14:7). This is because Jacob represents the external person and Israel the internal person, and even after the internal person comes into being, we spend much of our lives living on the external level.

(Reference: Arcana Coelestia 4274, 4292, 4570, 5595, 6225, 6256, Genesis 2:5, 46:8)

4570. 'But indeed Israel will be your name' means the nature of the internal natural, or the nature of the spiritual aspect of it, represented by 'Israel'; 'and He called his name Israel' means the internal Natural or the celestial-spiritual aspect of the Natural. This is clear from the meaning of 'name' as the essential nature, dealt with just above in 4568, and from the meaning of 'Israel' as the internal aspect of the Lord's natural and also the celestial-spiritual aspect of the Natural. No one can know why Jacob was called Israel unless he knows what the internal natural is and what the external natural is, and in addition what the celestial-spiritual aspect of the natural is. These matters have in actual fact been explained already, when Jacob was named Israel by the angel; but because they are the kind of things about which people know little, if anything, they need to be explained again.

[2] Two quite distinct and separate degrees exist in man - the rational and the natural. The rational constitutes the internal man and the natural the external; but the natural, like the rational also, has an external aspect of its own and an internal one. The external aspect of the natural is composed of the physical senses and of the impressions received from the world through these senses immediately. By means of his sensory impressions a person is in touch with things belonging to the world and to the body; and people who are confined solely to this natural are called sensory-minded because their thought goes scarcely at all beyond sensory experience. But the internal part of the natural is made up of ideas inferred - by the use of analysis and analogies - from what is in the external, even though it draws on and derives its ideas from sensory impressions. So the natural is in touch through the senses with things belonging to the world and to the body, and through ideas, arrived at by the use of analogy and analysis, with the rational, thus with things belonging to the spiritual world. Such is the composition of the natural. There is another part that exists between and has links with both of them - with the external aspect and with the internal - and so is in touch through the external with things in the natural world, and through the internal with those in the spiritual world. This external natural is represented specifically by 'Jacob', and the internal natural by 'Israel'. The situation is similar with the rational; that is to say, there is an external aspect and an internal, and a further one between the two. But this, in the Lord's Divine mercy, is to be discussed where Joseph is the subject, for 'Joseph' represents the external aspect of the rational.

[3] What the celestial-spiritual is however has been stated several times already - that essentially the celestial is good and the spiritual truth, so that the celestial-spiritual is that which is good resulting from truth. Now because the Lord's Church is both external and internal, and internal features of the Church had to be represented by the descendants of Jacob through things of an external nature, Jacob could not therefore be called Jacob any longer, but was called Israel - see what has been introduced already about these matters in 4286, 4292. Further to this it should be recognized that the terms celestial and spiritual are used both of the rational and of the natural. Celestial is used when people receive good, and spiritual when they receive truth from the Lord; for the good which flows from the Lord into heaven is called celestial, and the truth is called spiritual. In the highest sense the naming of Jacob as Israel means that the Lord progressed towards more interior aspects and made the Natural within Him Divine, both the external aspect of it and the internal. For in the highest sense that which is represented is the Natural itself.