Policies are objectives that an organization or government sets for itself to achieve in any given period. Laws are tools to both protect and control our society. Laws are also a set of rules to follow, but if you break the law, you will be held accountable. A government may have opinions in the sphere of health and education with certain objectiveness.
It formulates policies as guidelines or to move forward in a positive direction, and its principles are clearly outlined in the policies that help a government to come up with proposed law. The policy is technically a step under the law; however, the two words are interchangeable and possess similar meanings.