No no no, you can actually die, oh and believe me, you will die in that game. The mechanism Works like this, once you are beaten up till death, it will automatically replenish your health and so you will continue your quest, but if you are in the middle of a battle where you have already used Minpha´s grace and your are beaten again, you will die. Once this is used, it must recharge, so it makes you vulnerable to deatch till it is recharged.