I think all previous answers are quite enough, but I guess this will help you understand it too. If we look at $$y = \frac{1}{1+x^2}$$ we can show that it's expansion is
$$y = \sum (-x)^{2k}$$
But then we think.... why is it that this sum is only convergent for $|x|<1$ if the function is everywhere continuous and differentiable? Why does this sum behave this way when the function as such a good behaviour, in contrast to $(1-x)^{-1}$ or $(1+x)^{-1}$?
If we think in a "complex" way, we see that
$$y = \frac{1}{1+z^2}$$ doesn't behave that well. Indeed, it has poles at $z = i$ and $z=-i$. Thus when we think about the unit circle $|z| < 1$ things "make sense".
You can read a little about a result due to Abel:
If $\sum a_n z^n$ converges for $z \neq 0 = z_1$ then
- It converges absolutely for all $z$ such that $|z| < |z_1|$.
- It converges unformly in all circular disk with center at $0$ and radius $r<|z_1|$
- It diverges for all $|z| > |z_2|$ if it diverges for $z_2$.
The theorem reduces to intervals when we deal with real numbers. (consult Apostol's Calculus Chapter 11 for more info.)
Hope this helps.