Here is a great website that will tell you everything you need to know about cholesterol and how your body needs it survive.
an excerpt:
Cholesterol is a health-promoting substance. It is a critical component of cell membranes, the precursor to all steroid hormones, a precursor to vitamin D, and the limiting factor that brain cells need to make connections with one another called synapses, making it essential to learning and memory.
Some of the most nutritious foods like egg yolks and liver are also the foods richest in cholesterol. The anti-fat, anti-cholesterol campaign has demonized these foods for decades without any evidence they cause disease. To the contrary, they promote health.