Therapy vs. life coaching: What’s the difference?

It’s not unusual for people to assume that therapy and life coaching are similar, or even the same. Many conflate the two practices and don’t understand that there are major distinctions that separate these modalities. Today we’ll break down what makes therapy different from life coaching.

Training and education. First, mental health practitioners (i.e., therapists, counselors, social workers) undergo extensive training in order to become licensed to practice in the field. These providers must graduate with at least a master’s degree from an accredited program, along with completing a practicum and internship. After graduation, these providers begin what is commonly-known as a “residency,” where they practice therapy while receiving supervision. Anyone can call themselves a life coach, regardless of their background or training. Life coaches aren’t trained in areas that have the potential to cause problems in relationships where a power dynamic exists, and are often poorly equipped in handling transference and countertransference. Their work isn’t governed by a code of ethics, so blurred boundaries and dual relationships are much more likely.

Mental health providers are also required to take and pass lengthy licensure exams, which requires months of study and preparation. This leads us into the next major difference when it comes to therapists versus life coaches…

Diagnosis. Second, mental health providers can diagnose clients with a mental health disorder. Actually - going back to the licensure exam piece - providers must thoroughly understand mental health disorders in order to pass licensure exams. Studying the nearly 300 mental health conditions in the DSM-5 is one of the most demanding aspects of test preparation. The DSM-5 (the Diagnostic and Statistical Manual of Mental Health Disorders) is a taxonomic and diagnostic tool used by a wide range of healthcare professionals in diagnosing and treating mental health conditions. In addition to thoroughly understanding the different types of mental health diagnoses, therapists are also trained in knowing what therapies and treatments are best suited for each of those diagnoses. To put it simply, therapists can recognize if you meet the criteria for a mental health disorder, they can diagnose you with a mental health disorder, and they know how to treat that disorder. You do not need to have a mental health condition in order to see a therapist, however. Almost anyone can benefit from therapy.

With diagnosis comes the third major difference between mental health providers and life coaches…

Insurance. Third, because mental health providers can diagnose clients, they can also bill insurance. Health insurance will only reimburse for counseling sessions if the provider can make a case for why therapy is needed. In the eyes of an insurance company, if there’s no diagnosis, there’s no issue; it’s not a medical necessity. Even when providers don’t directly bill insurance (like at this practice), clients can still submit their own superbills for partial or full reimbursement. Superbills contain billing codes and diagnostic codes, which give insurance companies the information they need in order to pay for services. Further, insurance companies know that therapy providers have specialized training in evidence-based methods that yield real results. They know and trust that the support of a trained therapist will lead to an actual decrease in distressing symptoms. Which leads us to the next difference…

Focus of sessions. Life coaches typically work with clients on tangible and specific goals. They might help someone work towards a specific career goal such as starting a small business; a personal goal such as finding fulfillment through new hobbies; or a health goal like adapting to a new dietary or fitness regime. Interestingly, mental health providers can also help clients work towards these types of goals, while also supporting anyone struggling with mental health symptoms such as anxiety, depression, insomnia, low self-esteem, or anhedonia. Life coaches might claim to help in these areas, but they lack the proper training to truly be able to support someone struggling with mental health.

When thinking broadly about the focus of sessions, life coaches and therapists also differ in that life coaches place more emphasis on accountability, whereas therapists emphasize healing and wholeness. In therapy, if a client struggles with low motivation, accountability, and goal setting, a therapist may facilitate growth in these area by exploring related thoughts and feelings, along with looking at past experiences. A therapist can support you in accomplishing many of the same goals that might bring you to a life coach, with the added benefit of working towards healing and lasting change.

Ultimately, while there are qualified life coaches, choosing someone who is a licensed therapist (or working towards licensure) is the best choice. Therapists can support clients in a more holistic and informed way, are much more qualified in offering strategies, guidance, and expertise, and work within a healthcare field where safeguards exist in order to protect clients.

If you have more questions about the differences between life coaches and therapists, email me at dannica@meridianvistapsychotherapy.com