Use when the situation is extremely dangerous and there's a real chance of harm. During the bank robbery, everyone was in fear of their lives.
Pro Tip 2/3
Not Literal
Sometimes used figuratively to describe a scary, but not life-threatening, situation. With that fierce dog barking, I was in fear of my life, though it was behind a fence.
Pro Tip 3/3
Emotional Impact
Conveys strong emotional distress; people you're talking to will understand you felt extreme fear. During the earthquake, we were in fear of our lives and couldn't think straight.