by 
The Curious Bag
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Although high levels of cholesterol can lead to heart disease and stroke, cholesterol does have important functions in your body. It has a role in eliminating excess fat, transporting nutrients and synthesizing hormones. It also participates in cellular membrane function.
Fat Transport
HDL, or good cholesterol, in the bloodstream transports excess cholesterol from your tissues to the liver for elimination, thus helping to control your serum cholesterol levels.
Hormone Production
The cholesterol molecule forms the chemical base of important hormones such as estrogen and testosterone, which play a role in maintaining normal sexual function.
Vitamin D
Vitamin D synthesis also depends on cholesterol as a precursor molecule. The functions of vitamin D include helping in the formation of bone from calcium and the regulation of blood sugar.
Fat Digestion
You need bile to help break down the fat in your diet. Your liver, which can make cholesterol, uses it to produce bile. The gall bladder stores the bile and releases it into the intestines as needed.
Cell Membranes
Your cell membranes are partly composed of cholesterol. It insulates cells against changes in temperature. In the central nervous system, cholesterol covers and protects nerves from surrounding tissue.
Source:
University of Iowa Hospitals and Clinics: Cholesterol is necessary for the body to function properly
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