Time is not an illusion and its equal to space. Time=space.
But time exists in a relative way (physically and psychologically). It depends on space and exists only in macrouniverse. There's no time and space to quantum particles, they can go from one corner of the universe to other at same instant (if there's no time, there's no space too), they can go to both past and future too, and be at several places (no matter how far) at the same time.
In quantum realm there's no time (and space).
Matter is much more interesting than any concept of spirit or soul. And we are made from this fantastic stuff.