When you watch my video here, you'll see that Transformational Life Coaching shares some similarities with psychotherapy (mental health counseling):
1) Both can focus on life problems and solutions.
2) Both can use powerful, energetic holistic methods of healing and transformation, such as Tapping, HeartMath, and Clinical Hypnotherapy.
3) Both can deal with improving self-concept, though psychotherapy might deal better with low self-esteem while coaching is great at improving self-confidence.
4) Both are based on a model of complete confidentiality as well as empathy and non-judgment of the client.
But is also different from psychotherapy in several ways:
1) Psychotherapy is better suited to those with significant mental health problems, including depression, anxiety, trauma, psychosis, dissociation, suicidal thoughts, addiction, etc.
2) Life coaching is more focused on problem solving: improving relationships, career, health, wealth, spirituality, self-confidence, etc.
3) Psychotherapy is billable to health insurance while coaching typically is not.
4) Psychotherapy must occur in person for many insurance companies to reimburse while coaching is often done over videoconferencing or even by phone.