Unconditional love casts out fear.

Background
While it is hard to exactly date when Bible books were written, most credible scholars date all the New Testament writings except John’s writings in the 40’s to 60’s AD.  These writings came out when a large number of eye witnesses to what Jesus said and did were still alive.  This gave significant credibility to these writings that were all completed by Jesus apostles either directly or through the hands of those working with them (1 Corinthians 15:3-8).  John’s writings, however, were compiled within about 5 years of 90AD which would have mostly had an audience of second generation Christians.  As one of Jesus’ inner circle of 3 apostles (with Peter and James), having John available to reinforce the original teachings during a time when critics were trying to create dissent was critical (John 21:22).

Dissenters since the time of Jesus have tried to reinject the idea that we need to earn God’s love.  Much of John’s writings emphasize the core gospel of God’s unconditional love.  God integrated His love into our parent / child design.  A truly loving and wise parent makes sure their child understands that there may be consequences and rewards for actions, but all is in context of unrelenting unconditional love.

What it meant to the original audience
These second generation Christians were surrounded by people that wanted them to believe they needed to earn God’s love.  This was especially true of the Jews that still held on to the ritual sacrifices and other activities that Jesus said He fulfilled.  These Christians needed reassurance of God’s unconditional love and validation that “good works” was a “response to” not a “requirement of” that love.

For us today
Similar to their experience, the world today is teaching that you get to Heaven by being a basically person.  Some even add on some required religious rituals.  But God wants us to understand that He offers unconditional love.  Good parents make sure their child understands they are loved regardless of how good or bad they might be.  There will be rewards and consequences for actions, but the loving and wise parent makes sure the child understand those are purposeful in helping the child mature.

God wants us to understand we are unconditionally loved completely separate of “being a basically good person” or completing various religious rituals.