Cell is called structural and fundamental unit of life because body of all the organisms is made up of cells. It is functional unit of life because all the functions of body (physiological, biochemical. genetic and other metabolic functions) are carried out by cells.
Cells combine to form tissues, which further combine to form organs, organs combine to form organic systems, which further combine to form organism. So, cell is the basic structural unit for all unicellular and multicellular organisms.
Some of the basic life processes or functions takes place in every cell to keep the organisms alive such as digestion, respiration, excretion, etc., whether it is a single-celled organism or multicellular organism. So, the cells are also called the functional unit of life owing to these processes.