Most wallets use dynamic fees, and automatically adjust to how the market is.
You can visit https://bitcoinfees.earn.com/ to find out the current suggest fee for the network.

I recommend using this hardware wallet: https://www.ledgerwallet.com/r/895b?path=/products/ledger-nano-s
(I did a lot of research before picking the Nano S)

As for device failing, it has not happened yet, but you write down your 25 keywords in a safe place, and even if you loose the NanoS your wallets and coins are safe.
If someone tries to use your device and enters the pin in wrong 3 times, the device wipes itself.
As long as you have your keywords safely written down, you have nothing to worry about.
I feel much safer using the NanoS, and private keys are never exposed online, and you can even use safely on an infected computer (thats how safe it is).