Life Coach vs Therapist: 6 Major Differences To Consider

Maybe you've noticed an increase in people talking about therapy and coaching. Your partner has a therapist to manage their anxiety. Your neighbor has a coach to sharpen her leadership skills. Maybe you yourself are trying to decide whether to hire a therapist or a coach to guide you through stress management of becoming a new parent or another kind of major life transition, but you don't know where to start.

A coach guides clients through developing skill sets to reach a clarified goal within a specific timeframe. Some coaches support clients through any and all life goals and are broadly referred to as a life coach. But most coaches have a specialization, such as a health coach, career coach, leadership coach, relationship coach, and beyond.

"The processes life coaches use with their clients depends heavily upon the niche they choose (relationship, career, leadership, etc.) and may involve the use of a variety of tools & exercises depending on the niche and coach," Samuel Gozo, ACC, MCPC, a master certified professional coach and owner of Integrative Clarity Coaching, tells mbg. "All in all, the purpose of life coaching is to identify clear and concrete goals and actively partner with clients to achieve them."

On the other hand, therapy—short for psychotherapy—is a clinical-based approach to treating mental health issues that are listed in the Diagnostic and Statistical Manual of Mental Disorders (DSM-5), such as ADHD, anxiety, depression, or eating disorders. Oftentimes, therapy involves analyzing past experiences that help inform or explain current situations. 

One of the biggest differences between a coach and a therapist is how they're accredited. 

"Therapists are governed by a licensing board, and to legally provide psychotherapy, one requires a master's degree with a state license to practice," Melendres explains.

In the U.S., licensing requirements vary from state to state, but in general, only practitioners who have at least a master's degree in fields like social work, counseling, or marriage and family therapy and who have passed their state's licensing board exams can legally be called therapists. You'll see acronyms after a licensed therapist's name, such as LCSW (licensed clinical social worker), LPCC (licensed professional clinical counselor), or LMFT (licensed marriage and family therapist). 

There are many paths to becoming a therapist, but all therapists undergo years of school and training, including obtaining a minimum of a master's degree, acquiring clinical experience under the supervision of a licensed mental health professional, and passing a state-mandated board exam for licensure. Psychologists who hold doctorate-level degrees such as Ph.D. or Psy.D. can also choose to work with clients as therapists as well, though state licensing requirements may still apply. Psychiatrists, who are medical doctors holding an M.D. and who prescribe medications as part of a client's treatment plan, may also be called therapists.

For coaches, there is currently no centralized governing body that regulates or oversees the coaching industry, and there is no specific training or minimum requirements to become a coach. "I firmly believe that's on the precipice of changing," Gozo notes, though, "so it is strongly encouraged that anyone serious about becoming a life coach gets appropriately trained and certified to do so."

"Coaches are present-focused with a future consciousness," Gozo explains. Coaches keep their clients focused on the present as much as possible and provide sessions to move clients forward toward their goals.

Therapists, on the other hand, focus on the past and on mental health, says Melendres. "There's typically a diagnosis given to the client, and there is a treatment plan that is used. Clients are given the opportunity to look at what is going on emotionally, psychologically, and interpersonally."

Sessions with a therapist are typically one hour per week and usually start open-ended, allowing for the client to inform the topic of the session. There is not always a clarified "goal" for the session.

Sessions with a coach are also usually one hour each week and sometimes start open-ended, but the sessions will usually narrow toward a specific topic, as there is usually a specific goal to work toward.

Working with a coach is usually a short-term engagement that can range from one month to one year. The main function of a coach is to provide tools for a client to move from one state of being to the next, making progress toward their goal. Because coaching is set up for clients to make progress, it is important to work against specific timelines and milestones so the client doesn't remain stuck in old habits or behind recurring obstacles. By the end of your coaching sessions, you will likely have made progress toward your clarified goal.

Since sessions with a coach are usually a short-term engagement, there will be a clarified goal to work toward. Goals in coaching are usually based on action and solutions. Some examples of a clarified goal are public speaking for work, finding a relationship using online dating, and improved nutrition habits.

Most coaching practices are built on a framework that the coach has developed over time with various clients. Results using their coaching framework can be replicated for many clients.

Goals when working with a therapist include emotional processing, depression management, anxiety management, and how to handle grief. These goals are not always action-oriented. Sometimes exploring past experiences to find a root cause is necessary during a session, which may result in no specific actionable takeaway in that particular session. If you're working with a psychiatrist, medications can also be prescribed to manage mental health issues.

Funding for these services is an important consideration when evaluating which is right for you. Many therapists take insurance, which means that part (if not all) of your sessions may be covered by your medical insurance provider. This will vary by state, insurance provider, and therapist, so be sure to check your insurance policy and ask your potential therapist about payment. Out of pocket, sessions can cost anywhere from $75 to $200-plus per session. 

Most coaching is not covered by insurance, and each coach will set their own pricing, which can vary from $100 to $15,000-plus depending on different factors like your goal, niche, and length of program. However, some niche coaching like health coaching is on its way to becoming eligible for insurance coverage with efforts being led by NBHWC.

Both coaching and mental health industries are growing. In 2020, the American Psychological Association reported that therapists noticed a significant increase in patients seeking services, while research firm IBISWorld reports that the business coaching industry is worth about $10 billion—and that's just in one coaching niche.

Note: Some people find benefit in having both a therapist and a coach at the same time, so this doesn't always have to be an either-or situation!

After you've figured out what you want to work on and what you can afford financially, use a Google search or directories to find the right fit. For coaches, you can start your search on Noomii. For therapists you can begin your search on Psychology Today, Inclusive Therapists, or Therapy Den. Once you've found a few interesting prospects for your coach or therapist, reach out to each of them to schedule a short call to figure out if there is a good match between you and the coach or therapist. Most practitioners will offer a free discovery call to assess if there's a fit.

One in five adults in the U.S. experienced mental illness in 2020, and mental illness costs $1 trillion in lost productivity1 globally every year. But the good news is, mental health care is becoming less stigmatized and more widely accepted in various communities.

"A therapist absolutely can become trained and certified as a life coach and deliver coaching services," Gozo says. He adds that there are going to be similarities between therapy and coaching, as they both involve a co-collaborative relationship between client and professional, being results-oriented, establishing a safe space, proper validation, etc., "but each industry carries its own code of ethics, core competencies, do's and don'ts." 

Both coaching and therapy are tools for self-development. They provide great opportunities to have a professional guide you through the most challenging obstacles in your life. Depending on what you want to focus on, you can engage in either service one at a time or both at the same time if you have the means.