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.