John, 
 
Many people have the misconception that if people never accept the gospel that they will live in hell/purgatory/spirit prison/etc forever. 
 
That is simply not the case. 
 
We believe that they will receive a reward of glory for eternity. There are varying degrees of glory, but they will live on in eternity in a marvelous, glorious environment. For those that do accept the gospel and faithfully stay true to their covenants with their Heavenly Father - they will receive an even greater glorious reward - something we don't fully understand yet.

I am a father of 2 and when they dont believe the things i tell them and they do the exact opposite, I dont turn them away. 
I will always love them and the same will go for any of us. God is loving and just and knows the intent of our hearts. He has a place for all of us and im sure would be far more beautiful than we could imagine. 
As far as hell goes i feel that you make your own hell and if thats how someone would want to feel for eternity then the choice is thiers.

Not accepting the gospel before the day of judgement prohibits you from attaining a fullness of joy. You will inherit a lesser kingdom of glory depending upon if you lived a good ore wicked lifestyle.  
 
The biggest thing is that once the veil is lifted you will remember your premortal existance and remember being in the presence of God before you came to Earth. You will be sad knowing that you can never again be in his presence because you rejected Christ and the Gospel.  
 
There is not hell fire or burning, just the disappointment of not living to the fullness that you could of.  
 
Christ, the Holy Ghost, and friends and family will visit you and you can visit others in a lower kingdom if you desire (except outer darkness) but you will never again feel the presence of God for all eternity. This is what we call spiritual death, even though you have a resurrected body you will not have eternal life (which is a fullness of joy) since our goal is to return to God.