The difference between lifecoaching and therapy

3.24.2026

Unlike some other countries, wherein anyone can claim to be a “therapist” or “psychologist,” the US restricts the usage of these terms to avoid confusion and possibly malfeasance.

Here, we make clear distinctions so those terms and professions don't get abused. The misuse of these terms can even result in legal consequences for those who misrepresent themselves.

A Psychologist, for example, has to have a PhD and complete hours of clinical training to be able to call themselves that. There are also psychotherapists, therapists, licensed mental health therapists (LMHT), and licensed clinical social workers (LCSW), all of which require a Master’s Degree as well as further clinical training.

The word “counselor” is a grey area, in that non-degreed practitioners can refer to themselves using that nomenclature. Think camp counselors. It is, however, unadvisable to use the word “counselor” in a professional setting like life coaching due to the possible confusion. To add to the confusion, there are related fields that call what they do “therapy,” even though it’s a certificate program, not a degree, and is also not regulated. For example, hypnotherapy. It is an unregulated industry with no degrees or licenses required. Fortunately, there are some regulations in place regarding the usage of these terms, and there may be consequences for using them if you are not a licensed therapist, as in using them when treating mental health issues. Another field that is surprisingly not regulated is drug treatment. There is no regulatory body keeping checks on rehab facilities–nothing that “accredits” them, legally. But even in countries that don’t regulate any of the above mentioned fields, it is still ethical and professional to use the appropriate terms when referring to what you do and whether you've received appropriate training.

Life coaches often use therapeutic techniques such as Cognitive Behavioral Therapy, Therapeutic Art, NLP (Neuro Linguistic Programming), hypnosis, and other psychological tools, when working with clients. The word “therapeutic” means that it benefits the body or mind and increases wellbeing. Using these tools is helpful as a coach, however it is not the same as conducting “therapy” like a therapist.

The Boundary Between Coaching and Therapy:

A life coach can and often does use therapeutic and psychological tools to help people deal with certain situations in their lives. These include: changing their thinking; Increasing their emotional wellbeing; Changing limited belief systems; Reframing past experiences; Setting and achieving goals; Making life changes; Increasing motivation; Learning a new skill; Changing their self-identity; and more.

In general, life coaches are focused on the present and the future, rather than the past. Life coaches help their clients explore their past only as a means of understanding their current life experience and belief systems. Their primary goal is to help a client look at where they are, where they want to be, and how to get from point A to point B. A therapist may also help clients with these areas of their life, but they also help their patients treat mental illness or clinical anxiety or depression; Heal past trauma; Cope with abuse; Treat addiction or substance abuse; Cope with relationship turmoil or violence; etc.

In contrast to the role of a life coach, therapists are past and present oriented. While a therapist may work with clients to set goals and make changes, primarily clients come to them seeking assistance with healing trauma, overcoming abuse, treating addiction or treating mental illness. Because therapists have a specialized graduate degree and clinical training, they have an extensive foundation of knowledge about the mind, biology, and human behavior. They are qualified to help clients in these sensitive areas, and, more importantly, they are properly trained on how to handle the volatile nature of these situations.

Sometimes when coaching a client, an unexpected deep trauma can surface or it can become apparent this person is dealing with a deeper mental health issue than a life coach is qualified to help them with. In this case, especially if the person expresses the possibility of harming themselves or others, it is the coach's moral imperative to refer this person to work with a properly trained, licensed mental health professional. Failure to do so can lead to legal liability. A life coach can continue to work with them if they seek the treatment they need, however it is not good for you or the client to continue to work together if they are not being properly treated.

Working with people who experience anxiety, sadness, or mild depression is okay because those are normal human emotions, however the following higher-level manifestations of anxiety and depression are signals that the person needs help that a life coach is not qualified to provide: Incapacitation or inability to function in daily life; Panic attacks that cause harm or require hospitalization; Suicidal thoughts, history or tendencies.

Life coaches should not intentionally work with clients who have been diagnosed with mental illness or personality disorders such as psychopath, sociopath, borderline personality disorder, obsessive compulsive disorder, multiple personality disorder, bipolar disorder, PTSD, etc. However, this does not mean that life coaches cannot coach people who fall under these categories, as long as the person is also receiving adequate treatment. In these situations, the life coaches are not addressing the underlying illness. Instead, they are supporting the person to make life changes, set goals, and practice new ways of thinking.

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