ahh, so i just created a passphrase wallet. does this mean - i can destroy/lose my hardware usb device, buy a new one, then re-create my wallet with my seed words. But then, i also equally need my passphrase to access the btc? if this is the case i like it, i can store my seed words and my passphrase at separate locations
Yes and you are right, but you should not be careless when storing your passphrase, because if it is lost, or even stolen by someone else, then there will be many risks that you will face, between losing the Bitcoin you have and not being able to access your wallet forever. Therefore you should store it properly, if possible write it on paper then cover it with plastic so that it is not easily wet or eaten by termites, and for better storage you should store it in a steel safe if possible for you.