Yes, this is a fascinating road to venture down. It has been my sense that this world is indeed a kind of illusion. And I don't think we leave the illusion when we physically die, either. But when we finally wake up, the illusion falls away... and who knows when that will be? Could be tomorrow!
Intellectually, I find it an easy thing to see human beings of physical matter as being in the densest form. Because my meditations show me that I am a being within a being (Higher Self) within a being (God/Goddess) within a being (beyond my comprehension), etc etc ~ but then I think well... infinity in, infinity out as Nassam Harreim (the physicist) would say, right? But when I think of beings inside of me, can't find them ~ at least not yet. And yet they say when you look inside of cells, they are mostly "empty" space also... and well... welcome to another universe, really. So how far in can we look? infinity in means there are beings in there, too if you can get small enough. Forever out, forever in.
But that's just looking at things from the perspective of FORM, the form I am in right now. There are other perspectives.
Sometimes, when I am not thinking of myself as a person, I see myself as a journey. Like, if you think of a journey you took once, and you collect all the various aspects of that journey including all the emotions, experiences, relationships, etc etc and you put that collective into a body and gave it a name, it could be a person too, in a different universe/reality. Jane rollicking merrily along in her reality unaware that she is actually my journey-made-human.
So I am a journey (of some Vast Expanded Being who wanted this crazy earth physical experience)
That's another level. Another perspective. I imagine there are millions.
We could be here all night.
