1. Most of the plants and animals fats constitute storage compound. Fat is stored mainly in adipose cells in the animals. 2. In oil seed plants, oil provides nourishment to developing embryo during seed germination. Oil extracted from these seeds is used in cooking. 3. Fats provide energy to the body. 4. Fats serve as insulator and protect body from cold. It gets deposited beneath the skin. 5. Phospholipid form an structural component of all biomembranes in cell. 6. Cholesterol acts as precursor for synthesis of various hormones, vitamins and bile salts. 7. The lipid form the white matter, grey matter of brain and myelin sheath of neurons.