When TLS is applied, the password travels encrypted yes. That's the whole purpose of TLS 
Everything inside the TLS secured channel is encrypted, the e-mail itself, the password before that.
Most commonly used protocols use just one connection, such as HTTP(S), SMTP, IMAP.. There are exceptions to this of course, such as FTP. FTP uses two TCP connections: one command and one data connection. With FTPS, """secure FTP""", many times only the command connection is secured with TLS. Luckily, the password is send through this secured command connection, but all the data subsequently send isn't secured. But as said, this isn't the case for the many common protocols we're talking about here (web/email).