[theophilus]

Most people call this a parable but I see no indication that this is correct. When Jesus told parables he told of something his hearers knew about from experience and then showed a spiritual meaning. In this account he went directly to something his audience knew nothing about.

The Old Testament speaks of all who die, whether they are good or bad, going to a place called Sheol that is located somewhere under the earth. In Greek this place is called Hades. The fact that the rich man could see and speak to Lazarus and Abraham shows they were all in the same place, just in different parts.

When Jesus paid for our sins by his death on the cross, it opened the way for the righteous to enter Paradise, in the third Heaven. Jesus told the criminal who repented that he would be there that same day. I think it is safe to assume that Abraham, Lazarus, and all the other righteous dead are now there as well.