For most Mormons it is equivalent to resurrection, which is the only free gift in Mormonism. This is why many can say they believe they are saved by Jesus alone. They mean they believe they don’t have to do anything to gain resurrection.
When it comes to salvation from sin, they say: “you will not be completely saved from sin until you have finished your life on the earth, having faithfully endured to the end. Note that you cannot be saved in your sins; you cannot receive unconditional salvation simply by declaring your belief in Christ with the understanding that you will inevitably commit sins through the rest of your life. Through the grace of God, you can be saved from your sins. To receive this blessing, you must exercise faith in Jesus Christ, strive to keep the commandments, forsake sin, and renew your repentance and cleansing through the ordinance of the sacrament” (True to the Faith, pp. 151-152).
Biblical Christianity teaches that salvation from sin is free and full in Jesus. We are saved by grace alone through faith alone in Jesus alone (Ephesians 2:8-9). Jesus not only paid the price for all sin, he also kept the law perfectly for us. Salvation is his gift to us.