Thus came the voice of the Lord unto me, saying: “All who have died without a knowledge of this gospel, who would have received it if they had been permitted to tarry, shall be heirs of the celestial kingdom of God; also all that shall die henceforth without a knowledge of it, who would have received it with all their hearts, shall be heirs of that kingdom; for I, the Lord, will judge all men according to their works, according to the desire of their hearts.”
Doctrine & Covenants 137:7-9
Before I address this passage, there is a bit of a quandary:
This is in the Teachings of Presidents of the Church: Joseph Smith, pg.403, and I’m guessing it was published in 1997 since it's of the same series as the one on Brigham Young, which shows 1997—I tossed the one on Smith’s teachings after I tore out the pages I wanted to address.
My 1968 D&C does not have this “prophecy,” having ended at D&C 136.
My 2002 “Triple Combination” (BOM, D&C, POGP) DOES have it, as does the current version on the LDS internet page.
SO what gives? Why was this not in the 1968 version? I don’t have a copy of any earlier publication, but I’d like to know when it was dropped.
Anyway, there is a real problem here. If a person has never heard the true, biblical Gospel then they cannot have “confess[ed] with [their] mouth Jesus as Lord and believe in [their] heart that God raised Him from the dead,” then they cannot be saved (Rom.10:9). Their chance of doing so was lost when they died (Heb.9:27).
If they didn’t hear the Mormon gospel it doesn’t matter because it’s a false gospel so they can’t be saved anyway.
On top of that, we are not save by our works; this is stated throughout the New Testament. (e.g., Eph.2:89)