The next essential belief to dispensationalism is that Israel and the church are distinct and cannot be identified as one with the other. All dispensationalists agree that the church is not a new Israel as those of the covenant persuasion insist. Dispensationalists may disagree as to some specifics, but none of them, unless seriously confused, embrace "replacement theology" or what is also called "supersessionism".
The greatest argument for this is the fact that the term "Israel" is used seventy-three times in the New Testament and it is always, without fail, referring to ethnic Jews. Some will contend that Paul's use of the term "Israel of God" in Galatians 6:16 is referring to the church. However, the context clearly dictates that he is not referring to the church, but instead to believing Jews that had rightly rejected the teaching of the Judaizers.
Those who believe that the church is the new Israel say that this exchange if you will, happened on the day of Pentecost. But strangely enough, even after Pentecost, there is always a distinction made between Israel and the church. In the book of Acts alone, the term "Israel" occurs twenty times and the church term church (ekklesia) occurs nineteen times. Yet, the two are always kept distinct This is just further proof that the church is not Israel and never will be. Those who confuse the two will forever be inconsistent in their view of Scripture and God's distinct plan for both.