Why is the covenant of grace significant for Christians?

In the covenant of grace, established before creation, God appointed a specific people for salvation through Jesus Christ. This covenant showcases God's unmerited favor towards sinners who could never earn their salvation. The Father elected a people while the Son agreed to fulfill the redemptive work, ensuring that their righteousness and justification would rest entirely on His obedience and sacrifice. As it emphasizes salvation as an act of divine grace rather than human effort, the covenant of grace reassures believers that their eternal security lies not in their actions, but in Christ’s perfect work. Understanding and embracing this covenant is essential for believers as it underlines the very foundation of the Gospel.