Death: Allow Aging should show up in Sim, Household, Caste, and Town Options. It wouldn't make sense for it to be on Lot Options. That would mean a sim is aging (or not) only while they are actually on a lot currently, but the Aging Manager doesn't work that way.
The other reasons that the option won't show, across the board not just on Lot Options, is that you are currently playing in a world that is not your sims' homeworld -- such as having traveled on a vacation or are at Uni in Uni World. Or you are currently playing with SP's progression switched off under General, but that doesn't seem to be the case from your screenshot.