there is more than one word in original language that is translated "hell" in English. In the story of the rich man and Lazerus, the word used was Hades. In Math.10:28 on the other hand, it was Gehenna. in that passage, Jesus speaks of a situation where the body dies but not the soul, and another, where both are destroyed in Gehenna. It is agreed by most that this is a reference to the lake of fire, where it is said that death and Hades will be cast there. Whereas in the parable in question, Hades is spoken of as a place of torment (mental anguish...NOT torture), but we can see elsewhere that Gehenna is spoken of as a place of destruction.
There is a fundamental problem in passing off the story of the rich man and Lazerus as not real on the basis of it being a mere illustration or parable. And here it is: All of the parables have something in common. They speak of a situation that while may not be real, it is always something that is really possible. And the m.o. is to use the familiar to explain the unfamiliar. Therefore it is erroneous to claim that because it is a parable, the scenario presented in it must be unfamiliar. If that were the case, Jesus would be breaking protocol in using a totally unfamiliar and impossible situtation to explain something also unfamiliar. Not one parable of Jesus used a situation that could not possibly have happened. A person could find or lose a coin. A person could bury a talent. A man could hire people different parts of the day and pay them the same wage...and so on and so forth. These are all real and possible situations. So if the story of the rich man and Lazerus is truly a parable, it should also use a real and possible situation, not a totally made up and impossible one.
In conclusion, Hades is real. There will be and is weeping and gnashing of teeth. Jesus said so, when the body dies but not the soul. BUt He also said that only those who partake of Him by faith will live forever (John 6:10,51) (John 3:16). Therefore we can understand that Hades is not a forever situation. It will be thrown into the lake of fire. In that place, which was created for the devil and his angels, human souls will be destroyed. Humans are not immortal. Angels and demons may well be, but Adam and Eve were denied access to the tree of life lest they take and eat of it and live forever (Gen.3:22). Living forever is not automatic in the case of humans. So in the debate about hell, we must acknowledge the different things that the translators have rendered as hell, and also acknowledge their different purpose.