Although coconut oil and coconut milk contain saturated fat, they also provide health benefits. Like most saturated fats, coconut-derived ingredients increase low-density lipoproteins ("bad cholesterol"), however they have also been shown to significantly increase high-density lipoproteins ("good cholesterol'"), which helps to move bad cholesterol out of the body (1). Coconut may also help to boost the immune system and its lauric acid content can help to boost healthy gut bacteria.
Referenced sources:
Khaw, K, Sharp, S (2018). Randomized trial of coconut oil, olive oil or butter on blood lipids and other cardiovascular risk factors in healthy men and women.
Fallon, S, Cowan, T (2013). The Nourishing Traditions Book of Baby & Child Care.