What does the Bible mean by 'perfect love casts out fear'?

In 1 John 4:18, we read that perfect love casts out fear, meaning that the love God has for His people eradicates the legal fear of judgment that may plague our consciences. This fear often results from an inability to meet God's standard of righteousness through our works. However, when we comprehend the depth of God's love, particularly His commitment to His elect through Christ, we can rest in the assurance that our sins are forgiven and we are clothed in Christ's righteousness. Thus, the legal fear that torments individuals who seek to earn favor with God is replaced with peace and confidence, for we know that Christ has fulfilled the law on our behalf.