Life Coach Vs. Therapist: Understanding the Differences

What Is a Life Coach?

A life coach is a paid professional who helps you to reach your goals. When hiring a life coach, you have already identified where you need help and know the goal you want to achieve. The life coach guides you in the process. They provide detailed direction and accountability.

Here are a few common types of life coaches:

• Relationship coaches
• Parenting coaches 
• Health coaches
• Business coaches
• Spiritual coaches
• Grief coaches
• Career Coaches
• Financial Coaches

What Is a Therapist?

A therapist is a paid professional with at least a Master’s degree. They help you identify and explore what issues in your past are prohibiting you from moving forward or help you decide about a concerning issue. A therapist is looking at the entire picture of your life and guiding you to what you think is best for you.

Here are a few common types of therapists:

• Family therapists
• Cognitive behavioral therapists
• Psychodynamic therapists 
• Couples therapists
• Child therapists
• Trauma therapists
• Holistic/Integrative therapists
• Dialectical Behavioral therapists
• School therapists

What Is the Difference Between a Life Coach & a Therapist?

A therapist is interested in your history. How does your past affect how you see the world today?  Resolving the past allows you to make meaning and move forward with your best self. There is great depth in therapy, and a therapist is focused on mental health and healing. Therapy usually entails a diagnosis from the DSM V-TR.

In contrast, a life coach is focused on the here and now. Where are you in this place and time, and where do you want to be in the future? Coaching is not about healing, it is about direction. It is a systematic process of achieving goals. Many therapists also work as life coaches because there is some overlap in skills.

Here are some key differences between a life coach and a therapist:

1. Philosophy & Focus

Williams & Davis describe therapy as a “paradigm of pathology” and coaching as a “paradigm of possibility.”¹ While therapy has shifted and is becoming more focused on strengths, there is still an undertone of “needing to be fixed,” especially if a client wants to utilize health insurance. The purpose of therapy is to relieve pain and symptoms to restore function.¹

Coaching is focused on creating personal fulfillment and attaining specific goals. The client is moving toward a goal rather than simply away from emotional pain.¹ Coaching focuses on the vision of the future. Coaching answers the question, “How?” while therapy answers the question, “Why?”

2. Education

It is important to know that the field of coaching is largely unregulated.  Anyone can call themselves a life coach. Unless a life coach has chosen to participate in additional training through an accredited organization and chooses to follow an ethical code, there is no “gold standard.” Several coaching institutions have high standards, however, this amount of education is not required to be a coach.

On the other hand, therapists require a minimum amount of education. A therapist will have at least a Master’s degree, and many have a Doctorate degree. They are also licensed and report to a regulatory board. They are also required to have continuing education. They follow a Code of Ethics and have significant accountability and liability.

3. Insurance

Life coaching is not covered by insurance. To utilize insurance for therapy, an individual must have a diagnosis from the DSM V-TR, a minimum length of appointment time (at least sixteen minutes), and evidenced-based treatments (such as cognitive behavioral therapy) must be utilized. Documentation is also required to provide proof that these minimum standards were met.

4. Confidentiality & Location

Both life coaching and therapy typically have online appointment options. However, the therapist is required to follow the Health Information Privacy and Portability Act.² Therefore, therapy requires a confidential area and, before Covid, this was usually a therapist’s office, but today includes remote settings.

Because of the lack of regulations in life coaching, coaches can easily cross state lines and, sometimes, work internationally. Licensing laws limit where a therapist can work, and state laws vary from state to state. Sometimes it is required that the therapist be licensed in the state in which the client is located, sometimes the state where the therapist is located, and sometimes both. While there are such things as PsyPact and The Counseling Compact, these laws only apply in some states and not internationally.^{3, 4}

5. Duration

Therapy sessions are typically fifteen to sixty minutes long.  Part of this is because therapists get paid by insurance carriers in increments of time.  If a therapist agrees to file insurance, an insurance company will only pay for a one-hour session…even if the session is three hours long. Some insurance companies will only pay for forty-five-minute sessions for “non-serious” mental health concerns. Therapy also typically doesn’t have a set “end date.” Sessions would continue until you notice improvement in symptoms, which could be years.

Life coaches may adjust the duration of their coaching sessions and offer check-ins by phone, online, or email.  It is not uncommon for life coaches to offer “packages.” Their services are usually time-limited, and a new agreement is made if you and your life coach decide to continue your work together.

6. Cost

Costs vary widely for coaching and therapy.  If you utilize insurance, there is a limit to how much your therapist can charge you, and your insurance company dictates this. Balance billing (more than the contracted rate) is unethical and against insurance contracts. If a therapist chooses not to take insurance, there is no limit to how much they can charge, but your therapist should provide you with a Good Faith Estimate.

Coaches are not limited by what they can charge.  Some coaching packages are costly, while others (such as group coaching) can be very economical. Some coaches also require payment in full upfront before beginning services. Costs vary widely and are usually based on the reputation of the coach. Before beginning your coaching sessions, prices should be explained to you, but this isn’t regulated or technically required.

Which Mental Health Professional is Right for Me?

Determining which mental health professional is right for you can be challenging and is based on individual needs.  Chronic mental health concerns such as post-traumatic stress disorder, anxiety, depression, bipolar disorder, and schizophrenia likely require a therapist. A therapist is also more appropriate if you want your provider to interact with your medical doctor.

Time-limited challenges could benefit from the help of a life coach. A coach could be a perfect fit if you need help with one specific issue (for example, a DIY website for your business or finding yourself after your adult children have left the family home).  A competent life coach will refer you to a therapist if your needs exceed their scope of practice. Some people hire both a therapist and a life coach.

How to Find the Right Life Coach for You

To determine if an individual is legitimate, looking for nationally known credentials such as a Board Certified Coach (BCC) from the Center for Credentialing and Education or the International Coaching Federation can be helpful.^{5, 6} While these are not the only two, both organizations have a minimum educational requirement and an ethical code.

Online directories can also help find a life coach.  Online directories will be typically associated with formal training organizations, or participants would have needed to prove that they have been trained. Many larger employers offer coaching services, and some insurance companies are also starting to offer coaching.

Here are a few tips for how to find the right life coach for you:

• Does the life coach specialize in your specific concern?
• Does the life coach have a history of success with their clients?
• What training have they done that makes them qualified to coach? Do they possess a coaching credential?
• Are their policies and procedures conveyed to you?
• Is what they are offering “too good to be true?”
• Are they staying current on relevant changes in the field, and how do they do this?

How to Find the Right Therapist for You

Finding a therapist can seem overwhelming, especially if you are struggling with mental health concerns.  Look for a therapist that specializes in your symptoms.  It may also be helpful to research what treatment is standard for your particular concern and then look for a proficient therapist in that treatment modality.

Most therapists have websites or are listed in an online therapy directory. Some therapists also offer free phone consults or will respond to emails so that you can ask any questions that you may have. Online therapy platforms can be beneficial for finding a therapist, too.

Here are a few tips for how to find the right therapist for you:

• Search for the license of the therapist and see if there have been any complaints
• Ask your medical doctor or other service providers, such as massage therapists, nutritionists, chiropractors, and acupuncturists
• Explore therapeutic modalities for your mental health concern and search for therapists who specialize in these areas
• It is okay if the first therapist isn’t a good fit. Search for another. You must have a positive therapeutic relationship with your counselor.