Well, physical death is when the body of someone is either too old, sick or mangled to support a life, in which case the spirit/soul/ghost/whatever's inside moves on to wherever. After that, I have no idea what'd happen. I've been taught at my church that there's this kind of... waiting place, one called Prison and one called Paradise, where the spirits of people are kept. People who kept God's commandments and lived a righteous life went to Paradise to wait for the Judgment Day, and people who commited sins or were bad people went to Prison to wait. After that, at Judgment Day, a spirit will be sent to either the Celestial, Terrestrial or Telestial Kingdoms. The Celestial Kingdom is the highest degree of glory, where the people who belong to my religion will go, where they'll be the angels of Jesus and God. They'll be blessed and prosperous people who have hardly sinned at all.
The Terrestrial Kingdom is where the people who lived good lives, but didn't know or accept the church while they were alive. You could think that if the spirits in the Celestial Kingdom lived in grand castles, the spirits of the Terrestrial Kingdom would live in really nice houses. They're good people, but they're either athiest or of some other religion that isn't correct in the eyes of God. (Not flipping off any religions here, that's just the story..)
The Telestial Kingdom is the last degree of glory, where the sinners would go. The ones who committed lesser sins like stealing, taking drugs and profaining God and Jesus by taking their names in vain. Sins like that. They'd be people who'd live in tents, if you know what I mean.. Bleh.
Then there's Outer Darkness. This place is for the worst people who lived, for example Adolf Hitler and Asama Binaldin would be placed in Outer Darkness, with sins like murder and things. People who break the ten commandments knowingly and willingly multiple times are sent to Outer Darkness. This place is where Satan will be chained for a thousand years, and where his 'angels of darkness' will be bound.

Well, that's what my church believes, but.. I'm the type of person who needs to see it to believe it. If you wanna know which church this is (just in case some people don't know the church I'm talking about I mean), it's one called Mormon, or Latter Day Saints.

Ooh, I think I said a bit too much O.O I blabber easily xD;