Mormons are often challenged with the question, particularly from born-again Christians, about whether or not we have been saved. It's always a little difficult to answer though; let me clarify why (this is taken directly from a seminary student manual):
Elder Dallin H. Oaks, a member of the Quorum of the Twelve Apostles, said: “As Latter-day Saints use the words saved and salvation, there are at least six different meanings. According to some of these, our salvation is assured—we are already saved. In others, salvation must be spoken of as a future event ... or as conditioned upon a future event. ... But in all of these meanings, or kinds of salvation, salvation is in and through Jesus Christ” (in Conference Report, Apr. 1998, 76; or Ensign, May 1998, 55 ). The following are summaries of the six different meanings of which Elder Oaks spoke:
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We are saved from the permanent effects of death. Because of the Resurrection of Jesus Christ, all mankind will be resurrected.
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We are saved from sin through Christ’s Atonement and by following the gospel plan. Repentance is an important part of being saved from the consequences of our sins.
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We are saved when we are “born again.” This happens when we enter into a covenant relationship with Christ by accepting baptism, receiving the Holy Ghost, and taking Christ’s name upon us. We must also faithfully keep and renew that covenant relationship.
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We are saved from the darkness of ignorance as we learn about the gospel plan. The gospel of Jesus Christ brings light into our lives.
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We are saved from the second death, which is final spiritual death, because of Christ’s Atonement. Everyone, except for those few who become sons of perdition, will be placed within God's heavenly kingdom.
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Our hope is that we will be finally saved in the celestial kingdom (greatest degree of glory in heaven). In addition to the other requirements, this salvation, or exaltation, also requires that we make sacred covenants in God’s temples and remain faithful to them (see Conference Report, pp.76–78; or Ensign, pp.55–57 ).