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A second type, a temporary hell of the postmortal spirit world, is also spoken of as a spirit prison. Here, in preparation for the Resurrection, unrepentant spirits are cleansed through suffering that would have been obviated by the Atonement of Christ had they repented during mortality. At the last resurrection this hell will give up its captive spirits. Many of these spirits will enter into the Telestial Kingdom in their resurrected state.
Source: Ludlow, Daniel H, ed. The Encyclopedia of Mormonism. Vol. 2. HELL. New York: Macmillan Publishing, 1992.