This grade itself consists of different stages (fusul). You have to know that the lowest of them is the worldly and outward human existence comprising the initial stages of the self and its apparent manifestations.
Imam Khomeini has undertaken a series of serious discussions in this regard in his famous book "An exposition on Forty Hadith" as following:
Imam explains that the divine spark is blended with the physical to form man’s earthly existence. It is here in this body that the armies of good and evil are stationed, and the visible potentialities of body function as warring forces.
It has seven quarters. They are ears, eyes, tongue, stomach, private parts, and arms and legs.
All these diffused faculties under the control of the self are employed by the self in seven spheres of life.
The seat of imagination also is an important faculty, as the thought and imagination are sovereign over all visible and invisible human faculties.
If the faculty of thought resolves to employ all other faculties to move in the fiendish directions, all of them are converted into satanic forces and the whole territory (of existence) is turned into a satanic domain, and the forces of piety, rationality and good are weakened and subjugated by them.
As a result they wind up their business and leave off the scene, vacating the empire for the possession of Satan.
If the faith and reason take possession of the mind, and they command all human faculties to work in their own direction, man acts according to the dictates of reason and faith , thus making the empire (of his existence) a domain of divine and rational powers, and compel satanic forces to retreat with all its weaponry accepting defeat.
Thus the jihad of the self is the jihad of greater importance.
This jihad is superior to being killed in the way of God, since this condition implies overpowering one’s own powers and faculties, and placing them under the yoke of God’s command, and purging the domain of our body of satanic elements and their forces.