I need to understand how all of the hardware wallet works. What happens if your house burns down? Is there a backup?
Your hardware wallet holds your 24 phrase combination without allowing it to contact the outside world, and authorizes transactions. To activate the wallet you only need to put in your pin number. You also have to have your 24 phrase combination also written somewhere else. You can write it down on a card, but there are metal cards that are made specifically to store your passphrases, which you can store inside your fire resistant safe. Or you can store those passphrases offsite in a bank box if you like.
As long as you have access to either your passphrases OR your hardware wallet, you can recover all your crypto accounts.
And yes if you find this too complicated, then just park your funds on Blockfi or Gemini, and earn interest. Just be advised that crypto is not FDIC insured obviously, and if BlockFi or Gemini gets hacked, or they go under for whatever reason, they owe you nothing.