You can use the same letter for all universities for a given student. Letters should be no longer than a page (single-spaced), and no less than 450 words.
They offer the university valuable insights about how the student behaves in the classroom and what the student's strengths and weaknesses are. These letters are incredibly important in the admissions process.
As part of the admissions process, you may be asked by one or more of your students to write a letter of recommendation.