Edit: you only need seed.
Care to clarify? I would like to know for sure.
Hi sorry for short post i am using tab right now. And link copy paste not working >.<
Anyways, i read about it on reddit.
Seed is a number (encoded in words) from which electrum is able to re-create wallet aka private keys.
Password protects your wallet, if someone got your wallet.dat or access to your pc.
In other words seed is same as private key, thru which you can generate public key, but you don't need password of your wallet.dat file to spend coins,
So once you restore your wallet, you will be able to set a new password.