This is what is taught to LDS in church. We don't discuss the details beyond this in a church setting, but there are LDS members who go a little deeper in their study and learn the doctrine of exaltation. Modern day teachings avoid the details of the highest level of the CK because it involves polygamy, but you can find MANY teachings from past Prophets on what exaltation means.
http://www.mormonwiki.com/Mormonism/Cel ... l_Kingdoms
The Three Degrees of Glory
Mormonism's Plan of Salvation teaches that Heaven is divided into three separate kingdoms of glory: the Celestial, the Terrestrial, and the Telestial. These kingdoms are where all men and women, except a certain few known as Sons of Perdition,who will go to Outer Darkness, will go after they are judged of God and resurrected (their spirits reunited with their then immortal bodies). Entrance into each kingdom depends on a person's worthiness and their adherence to the commandments of God and the ordinances He has prescribed. Since God is the ultimate judge, all people will be judged fairly and put into the kingdom where they will be most happy. Mormon scripture describes that men and women will be sent to "their own place, to enjoy that which they are willing to receive" (D&C 88:32). Many people will be sent to the lower kingdoms "because they were not willing to enjoy that which they might have received" (D&C 88:32), namely exaltation in the Celestial kingdom. Even so, all three kingdoms are kingdoms of glory and even the lowest is more glorious than man can currently comprehend.
Celestial Kingdom
The Celestial Kingdom is the highest and most glorious of the degrees of glory and is symbolically represented by the sun. It is this kingdom where God Himself reigns.
According to revelation from the Lord, only those who have been married and sealed in the temple (whether in this life or vicariously or during the Millenium) can attain the very highest realm of the Celestial Kingdom. In agreement with the Apostle Paul's teaching that "neither is the man without the woman, neither the woman without the man, in the Lord" 1 Cor. 11:11 Mormonism teaches that marriage is not only divinely instituted, but eternally necessary and significant. Neither a man nor a woman can attain the fullest exaltation by themselves. Mormonism also teaches that since not all people have the opportunity to marry in this life, opportunity will be given them during Christ's millennial reign after His Second Coming. Additionally, Mormonism teaches that only those in the highest realm of the Celestial Kingdom will remain married and be able to form an eternal family.
Seven: this is where Chapel Mormons do not understand Celestial marriage. Modern day Mormons believe their monogamous marriage will qualify for the highest level. It is the entry point, but not the fulfillment of the New and Everlasting covenant when LDS are sealed in the temple. Previous Prophets taught that only plural marriage is in this level of heaven and also taught that Jesus and God are polygamists.
Mormon doctrine also teaches that all children who die before reaching the age of accountability (age eight, when children are then better able to judge for themselves what is right and wrong) will be saved in the Celestial Kingdom (D&C 137:10). Mormons also believe that all men and women "who have died without a knowledge of this gospel, who would have received it if they had been permitted to tarry, shall be heirs of the celestial kingdom of God;" as well as "all that shall die henceforth without a knowledge of it, who would have received it [the Gospel] with all their hearts, shall be heirs of that kingdom" (D&C 137:7-8).
Except for little children, those who hope to prove worthy of eternal life in the Celestial Kingdom must meet the following qualifications found in D&C 76:50-53:
Receive and be valiant in a testimony of Jesus Christ
Be baptized in the name of Christ
Receive the Gift of the Holy Ghost
Obey the commandments of God
Be washed and cleansed from all sins
Overcome by faith and endure to the end
Be sealed by the Holy Spirit of Promise
President James E. Faust of the First Presidency explained that "to have a covenant or ordinance sealed by the Holy Spirit of Promise means that the compact is binding on earth and in heaven." (“The Gift of the Holy Ghost—A Sure Compass,” Ensign, May 1989, 31)
Terrestrial Kingdom
The Terrestrial kingdom is symbolically represented as the moon. It is related to the moon because although it does not give forth as much light as the sun (Celestial), it gives more light (when viewed from earth) than the stars (Telestial). While people in the Terrestrial kingdom receive of God's glory, they cannot receive of His fullness or dwell eternally in His presence.
People will inherit the Terrestrial Kingdom for the following reasons (see D&C 76:72-79):
They died without law.
They received a testimony of Christ after this life but had rejected it while on the earth.
They were honorable people who allowed themselves to be blinded by the wickedness of the world.
They were not valiant in their testimonies of Jesus Christ.
Telestial Kingdom
In Mormonism the glory of the Telestial Kingdom is compared to that of the stars. People who are sent to the Telestial Kingdom will be the last to be resurrected and cannot dwell where God and Christ live.
According to the Doctrine and Covenants those who will inherit this kingdom are those who:
Rejected the gospel, the testimony of Jesus, the prophets, and the everlasting covenant.
Were liars, adulterers, murderers, thieves, and all others who flouted God's commandments.
[edit] Progression Between Kingdoms
A common question asked by members is whether it is possible for someone to eventually move from Telestial to Terrestial glory, or, relatedly, from Terrestial to Celestial glory. Some even compare it to wheels on a train. You may get where someone ahead of you was before, but they will always be ahead of you.
Some General Authorities have said that progressing through kingdoms was possible. However, General Authorities Bruce R. McConkie (in Seven Deadly Heresies), Spencer W. Kimball (in Miracle of Forgiveness), and Joseph Fielding Smith (in Doctrines of Salvation) stated differently. According to these General Authorities, once someone is within a kingdom of glory, they remain within that kingdom for all eternity; no one can advance out of a kingdom. Many General Authorities do speculate that there is advancement within kingdoms, though.