If you remove the physical body, what remains is the energy body. Nature spirits such as gnomes, elves and fairies have energy bodies. Imagine energy with consciousness that is subtler than that of nature spirits. The soul is a spiritual energy with consciousness. It is a being of divine intelligence, divine love and divine power.
Imagine that you have a pitcher of water. The water in the pitcher represents the higher soul, which is spiritual energy with consciousness. In order to grow and evolve, the higher soul extends a portion of itself down to the lower worlds. Imagine that you pour the water to an empty cup. The cup symbolises the incarnated soul. The higher soul and the incarnated soul are interconnected. At the same time, they are one. When a person lives a life of chaos, the incarnated soul gets disconnected from the higher soul. The incarnated soul becomes a lost soul.
To use computer language, the higher soul is like the mainframe. It has a consciousness of its own. The incarnated soul is like the terminal that also has a life of its own. The incarnated soul, manifested as you, is a small portion of the higher soul. Unfortunately, when the lower soul incarnates, in many instances it leads a life of uncontrolled passion. Out of ignorance of its true nature, it undergoes a lot of suffering because it identifies itself with the body and the emotions.
Reference : Achieving Oneness with the Higher Soul. Master Choa Kok Sui.