Correct. Had Ellen G. White (or whoever) carefully checked the incorrect translation of Sheol and Hades as "the grave" or "the pit" (in the KJV), when Sheol/Hades is in "the heart of the earth", or "the lower parts of the earth" (or near the core of the earth), a lot of doctrinal error could have been avoided. There are no souls sleeping in the ground six feet under the surface. There is just plain old dust, "for dust thou art, and into dust shalt thou return".
Physical death is THE SEPARATION of the soul and spirit from the body. Souls either go directly to Heaven to be with Christ, or directly to Hades to await judgment.
The Second Death is ETERNAL SEPARATION of the individual from God (in the Lake of Fire), "where their worm dieth not, and the fire is not quenched".
The scriptures say different, and I do not like Ellen G. White, but even a clock is right twice a day.
The bible clearly says that NOT ALL SHALL SLEEP.........So, is Paul telling us an UNTRUTH? Of course not. Where these souls rest I have no idea, but they are Resurrected from the Graves, say 1 Cor. 15. Lets us look at what Paul actually said:
1 Cor. 15:44 It is sown a natural body;
it is raised a spiritual body. There is a natural body, and there is a spiritual body. 45 And so it is written, The first man Adam was made a living soul; the last Adam was made a
quickening spirit. 46 Howbeit that was not first which is spiritual, but that which is natural; and afterward that which is spiritual. 47 The first man is of the earth, earthy; the second man is the Lord from heaven. 48 As is the earthy, such are they also that are earthy: and as is the heavenly, such are they also that are heavenly. 49 And as we have borne the image of the earthy, we shall also bear the image of the heavenly. 50 Now this I say, brethren,
that flesh and blood cannot inherit the kingdom of God; neither doth
corruption inherit incorruption.
(Sin Flesh can't inherit Heaven)
51 Behold, I shew you a mystery
; We shall not all sleep, but we
shall all be changed, 52 In a moment, in the twinkling of an eye, at the last trump: for the trumpet shall sound, and
the dead shall be raised incorruptible(with NO SIN FLESH, of course), and
we shall be changed. 53 For
this corruptible(sin flesh) must
put on incorruption(Spirit man), and this mortal must put on immortality.
54 So when this corruptible shall have put on incorruption, and this mortal shall have put on immortality, then shall be brought to pass the saying that is written, Death is swallowed up in victory.
Verse 44 tells us those who died are RAISED UP AT THE LAST TRUMP, as Spirit men, it doesn't say they went straight to Heaven !! How are they raised up? Without CORRUPTIBLE sin flesh, that is what Paul is saying, they are RAISED UP as Spirit men. We go to Heaven, we are judged, then we receive our Glorious bodies.
Thus those living at the Rapture are CHANGED in the twinkling or FLASH of an eye, and what does that mean? Well, Paul tells us in verse 52, we must CHANGE from the CORRUPTION (Flesh body that has known sin) to the INCORRUPTIBLE (Spirit man that has known no sin, for we were made over in the LIKENESS of Christ Jesus). So, all it means is we SHED THIS SIN FLESH, in a moment, in the flash of an eye, we DIE and then our Spirit man goes to be with the Lord in Heaven where we marry the Lamb and receive our Glorious bodies. Wherever the holding place for Spirits is, that is not relevant per se, if we are dead, we are RAISED without Sin Flesh, the is all I now, which means we have been SLEEPING, just like Paul says, we shall not all SLEEP. Those who say we go straight to Heaven can't point it out in the bible, but I can point out where the Dead are RAISED from sleep at the last trump right here.