Rayn,
SO SO SO HAPPY to hear that your husband has opted for surgery! Great job! Congratulations!!!
With a neobladder, yes he will pee from his penis. It is a bladder made out of a segment of intestine and then hooked up to all the original plumbing (ureters and urethra).
Usually the next choice after neobladder (for men) is Indiana Pouch (usually first choice option for women). That is where they use a segment of intestine to create a pouch and then make a stoma (often hidden in the belly button) and one uses a catheter to empty the pouch as needed.
The next choice (all personal preference and some people make this the first choice) is the ileal conduit. The ureters are connected to a stoma. The stoma usually exits the body on the side and the person would use what's called an ostomy bag that adheres to the skin. There is no internal storage of urine with this option and the ureters just drain through the stoma and into the bag. This is the easiest of the surgeries because there isn't all the reconstruction of a bladder/pouch.
Don't apologize for not knowing!
Nobody knows this stuff until it happens to us. Then we learn a LOT, very fast.
Here is a link from Cleveland Clinic that talks about the different diversions and has very helpful information for you and your husband.
Urinary Reconstruction and Diversion
Mike