The telestial kingdom will be a kingdom of glory for those who chose during their mortal probation to be dishonest, lie, steal, cheat, murder, and all other abominations. "These are they who are liars, and sorcerers, and adulterers, and whoremongers, and whosoever loves and makes a lie." (D&C 76:103) This will be their judgement and they will be resurrected with a telestial body.
The terrestrial kingdom is reserved for those who lived a good life, but were not valiant in their testimony of Jesus. They did not go the "extra mile" to be His disciple. "These are they who were honorable men of the earth, who were blinded by the craftiness of men. These are they who receive of his glory, but not of his fulness." (D&C 76:75-76) These people did not make evil choices, but rather failed to make the best choices and were satisfied with their own mediocre service to the Lord.
The highest degree of glory is the celestial kingdom. It is here that those who were valiant and did their best to serve God will live for eternity. We also believe that there are three degrees within the celestial kingdom. "In the celestial glory there are three heavens or degrees: And in order to obtain the highest, a man must enter into this order of the priesthood (meaning the new and everlasting covenant of marriage); And if he does not he cannot obtain it." (D&C 131:1-3)
To obtain the highest degree of glory we believe that we must be sealed for time and all eternity in one of the temples of God, by one who has the authority from God to do so. Those that are sealed and then live lives that are worthy of the celestial kingdom will inherit exaltation and will enjoy life with their family eternally. "And again, verily I say unto you, if a man marry a wife by my word, which is my law, and by the new and everlasting covenant, and it is sealed unto them by the Holy Spirit of promise, by him who is anointed, unto whom I have appointed this power and the keys of this priesthood; and it shall be said unto them-Ye shall come forth in the first resurrection; and if it be after the first resurrection in the next resurrection; and shall inherit thrones, kingdoms, principalities, and powers, and dominions, all heights and depths--then shall it be written in the Lamb's Book of Life, that he shall commit no murder whereby to shed innocent blood, and if ye abide in my covenant, and commit no murder whereby to shed innocent blood, it shall be done unto them in all things whatsoever my servant hath put upon them, in time, and through all eternity; and shall be of full force when they are out of the world; and they shall pass by the angels, and the gods, which are set there, to their exaltation and glory in all things, as hath been sealed upon their heads, which glory shall be a fulness and a continuation of the seeds forever and ever." (D&C 132:19) Those who do not enter into this covenant, but live exemplary lives, will be ministering angels in the celestial kingdom. They will not enjoy family relationships in the hereafter.
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