I have the option of contributing to an interest earning account under my company sponsored Group Universal Life policy. The customer service rep indicated the interest earned is tax free to the extent the interest is less than the premiums I have paid for the year.
Can anyone confirm this? Also, are there any limitations regarding the age at which these savings can be withdrawn without incurring a tax?

Thanks

What the representative told you is correct. The interest earned is in fact NOT considered to be interest for tax purposes, but rather are merely a reduction in the premiums paid.

As to whether or when you can withdraw the money tax-free, that would depend on the nature of the policy (whether it is true insurance or an annuity, or a hybrid of both.